Crude Oil Prices Climb for the Second Day

October 24 00:00 2011

New York, October 24 (RainbowNewsLine.com) – As investors speculated that the demand for fuel will go up and European leaders moved towards finding a solution to the euro zone’s sovereign debt crisis, crude oil gained for a second day in New York. Futures rose 1.3 percent after reports of Japanese exports rising more than forecast last month and expectations that Chinese manufacturing might expand at the fastest rate in five months in December.

Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney said “The market is still riding on optimism.”

Brent crude for December settlement climbed $1.19, or 1.1 percent, to $110.75 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract traded $22.30 higher than New York futures, compared with a record settlement of $27.88 on Oct. 14.

Oil for December delivery was at $88.41 a barrel, up $1.01, in electronic trading on the New York Mercantile Exchange at 2:13 p.m. Singapore time. The contract rose 1.6 percent to $87.40 on Oct. 21, the highest close since Oct. 18. Prices are down 3.4 percent this year.

A report on Oct. 21 showed that hedge funds boosted bullish bets on oil by the most in five weeks. Money managers added to wagers on rising U.S. prices by 8.7 percent in the seven days ended Oct. 18, according to the Commodity Futures Trading Commission’s Commitments of Traders report.

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