Crude passes $82 in New York
Crude oil rose, trading above $82 a barrel for a second day in New York, on speculation a US interest rate cut will bolster fuel demand.
The Federal Reserve lowered its benchmark interest rate by a half point, more than economists predicted, to help sustain economic growth in the United States, the world's largest oil user. The Reuters-Jeffries/CRB Index of 19 commodities on Tuesday (local time) closed at its highest since September 5, 2006, and gold reached a 16-month peak.
"The risk appetite is returning to the market, benefiting riskier assets like commodities, after the Fed confirmed it will do anything to prevent an economic slowdown," said Dariusz Kowalczyk, chief investment strategist at CFC Seymour Ltd in Hong Kong. "The weaker US dollar and lower interest rates are making it cheaper for non US dollar investors."
Crude oil for October delivery rose as much as 86 cents, or 1.1 percent, to $82.37 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $82.12 at 1:25 pm in Singapore. Gold for immediate delivery was at $724.44 an ounce at 1:27 pm in Singapore. It touched $726.95 an ounce yesterday, the highest since May 2006.
Oil gained 94 cents, or 1.2 percent, to $81.51 a barrel yesterday, a record close. Futures touched $82.38 late in the session, the highest intraday price since the contract was introduced in 1983. Prices are up 33 percent from a year ago.
Bloomberg News
(China Daily 09/20/2007 page16)
