Sept. 9 (Bloomberg) -- Crude oil traded near $71 a barrelafter surging yesterday as a slump in the dollar spurred demandfor commodities and as China pledged to stockpile more suppliesfor emergency use.
Oil gained as much as 5.5 percent yesterday as the U.S.currency dropped to the lowest level this year against the euroand on speculation inflation will accelerate. China, the world’ssecond-largest crude oil user, approved a plan to have 169million barrels in the second phase of an emergency stockpile,state-owned China National Petroleum Co. said yesterday. “Crude is inextricably linked to the dollar,” said PeterMcGuire , managing director at Commodity Warrants Australia, in aBloomberg Television interview in Singapore. “The dollar gotspanked yesterday so oil shot higher. China wants to buy as muchas they can as cheaply as they can. They know that their demandis going to go off the Richter scale for the next few decades.” Crude oil for October delivery was at $71.43 a barrel, up33 cents in electronic trading on the New York MercantileExchange at 1:40 p.m. in Singapore. Yesterday, the contract rose$3.08, or 4.5 percent, to $71.10, the biggest gain since Aug. 19.Prices are up 60 percent this year.
Full Story: Oil Trades Near $71 as Dollar Declines, China Plans Stockpiles - Bloomberg
Oil gained as much as 5.5 percent yesterday as the U.S.currency dropped to the lowest level this year against the euroand on speculation inflation will accelerate. China, the world’ssecond-largest crude oil user, approved a plan to have 169million barrels in the second phase of an emergency stockpile,state-owned China National Petroleum Co. said yesterday. “Crude is inextricably linked to the dollar,” said PeterMcGuire , managing director at Commodity Warrants Australia, in aBloomberg Television interview in Singapore. “The dollar gotspanked yesterday so oil shot higher. China wants to buy as muchas they can as cheaply as they can. They know that their demandis going to go off the Richter scale for the next few decades.” Crude oil for October delivery was at $71.43 a barrel, up33 cents in electronic trading on the New York MercantileExchange at 1:40 p.m. in Singapore. Yesterday, the contract rose$3.08, or 4.5 percent, to $71.10, the biggest gain since Aug. 19.Prices are up 60 percent this year.
Full Story: Oil Trades Near $71 as Dollar Declines, China Plans Stockpiles - Bloomberg
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