Oil Is Set for Fourth Weekly Gain on Economic Recovery Optimism

Aug. 7 (Bloomberg) -- Crude oil traded near $72 a barrel, poised for a fourth weekly gain on optimism the outlook for a global economic recovery has improved.

Oil is set to rise 3.2 percent this week as U.S. equities gained and the dollar weakened, increasing investor demand for commodities priced in the U.S. currency. The Standard & Poor’s 500 Index reached a nine-month high on Aug. 5.

“The recent combination of a marked improvement in global business sentiment and a weaker dollar has proved a potent mix for commodities,” analysts at Barclays Capital, led by Gayle Berry, said in a report. “The coordinated rise in new order indices in the U.S., Japan and the euro zone, where most are now either close to or just above 50, has coincided with the surge in industrially driven commodity prices.”

Crude oil for September delivery traded at $71.70 a barrel, down 24 cents, on the New York Mercantile Exchange at 9:23 a.m. in Singapore. Yesterday, the contract fell 3 cents to settle at $71.94. Futures have gained 61 percent this year and climbed 20 percent in the past four weeks.