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Oil rises on demand increase

23 November 2009 08:31 (UTC +04:00)

Baku- APA-Economics. Crude oil rose from a one-week low on speculation demand will increase as the global economy recovers from its worst recession since World War II.

A report today in the U.S., the worldâ€™s largest oil user, may show existing-home sales rose 2.3 percent last month to their highest since July 2007, according to a Bloomberg News survey of economists. Oil also gained as investors bought physical assets on speculation U.S. efforts to restore growth will extend the decline in the dollar.

Crude oil for January delivery rose as much as 86 cents, or 1.1 percent, to $78.33 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $78.19 at 1:16 p.m. Singapore time.

The contract slipped 58 cents, or 0.7 percent, to $77.47 on Nov. 20, its lowest settlement in a week. Gains by the dollar and declining equity prices eroded investor confidence in the outlook for commodity demand and trimmed the contractâ€™s gain to 44 cents for the week.

The December contract expired on Nov. 20 down 74 cents, or 1 percent, to $76.72 a barrel. Oil traded between $82 and $74.79 the past five weeks after surging in early October.
Brent crude oil for January settlement rose as much as 86 cents, or 1.1 percent, to $78.06 a barrel on Londonâ€™s ICE Futures Europe exchange. It was at 77.95 a barrel at 1:15 p.m. Singapore time. It fell 0.6 percent to $77.20 on Nov. 20.