July 27 (Bloomberg) -- Crude oil rose to the highest inmore than three weeks on expectations that gains in Asian equitymarkets are the precursor to a recovery in the global economythat will spur fuel demand.
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Oil also gained after investors sought commodities as ahedge against inflation as the dollar traded near a seven-weeklow against the euro. The MSCI Asia Pacific Index climbed 1.3percent today, the 10th straight increase and the longestwinning streak since January 2004. “Investors see the equity markets as a good lead for whatyou can expect oil demand to be going forward,” said BenWestmore , an energy and minerals economist at National AustraliaBank Ltd. in Melbourne. “At times when you’ve got highinflation expectations, investors tend to move toward realassets such as commodities.” Crude oil for September delivery gained as much as 94cents, or 1.4 percent, to $68.99 a barrel in after-hourselectronic trading on the New York Mercantile Exchange. That wasthe highest intraday price since July 2. Futures were at $68.80a barrel at 3:07 p.m. in Singapore. The contract earlier fell asmuch as 0.5 percent to $67.68 a barrel.
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Crude Oil Rises as Asian Equity Gains May Spur Demand for Fuels - Bloomberg