Crude Oil Trades Near $72 After Dollar Weakens, Equities Rise

Sept. 23 (Bloomberg) -- Crude oil traded near $72 a barrel in New York after rising yesterday as the dollar declined and U.S. stocks advanced on signs the world economy is improving.

Oil climbed 2.6 percent yesterday, the first gain in four days, as the dollar slipped to $1.4821 per euro, its lowest in a year. A weaker dollar bolsters the appeal of oil and other commodities as a hedge against inflation.

“Oil rallied above $70 fueled by the falling dollar and higher equities markets,” said Mike Sander, an investment adviser at Sander Capital in Seattle. “With the dollar losing value day by day other assets such as oil, gold, and equities become more attractive boosting their value.”

Crude oil for November delivery traded at $71.73 a barrel, down 3 cents, in after-hours electronic trading on the New York Mercantile Exchange at 9:21 a.m. in Sydney. Prices have gained 61 percent since the start of the year.

The Standard & Poor’s 500 Index rose 0.7 percent to 1,071.66 in New York yesterday. The Dow Jones Industrial Average gained 51.01 points, or 0.5 percent, to 9,829.87. The dollar traded at $1.4789 per euro at 6:04 a.m. in Tokyo.

The U.S. Energy Department may report today that crude oil supplies declined for a fourth week, according to analysts surveyed by Bloomberg News. Stockpiles fell 1.4 million barrels in the week ended Sept. 18, from 332.8 million, according to the median of 17 forecasts.

Industry Report

The industry-funded American Petroleum Institute said yesterday that U.S. crude stockpiles rose 276,000 barrels to 337.2 million last week. Gasoline supplies increased 3.82 million barrels, the report showed.

The Energy Department is scheduled to release its Weekly Petroleum Status Report at 10:30 a.m. in Washington. The industry-funded API put out its own data at 4:30 p.m. yesterday.

The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Brent crude for November settlement rose $1.84, or 2.7 percent, to end the session at $70.53 a barrel on the London- based ICE Futures Europe exchange yesterday.