Crude oil rose for a fifth day, trading near $75 a barrel in New York, after Organization of the Petroleum Exporting Countries (Opec) increased its world energy demand forecast.
Crude oil rose for a fifth day, trading near $75 a barrel in New York, after Organization of the Petroleum Exporting Countries (Opec) increased its world energy demand forecast and the weaker dollar boosted the appeal of commodities.
Oil gained 1.2 percent the Opec raised its 2010 global oil-consumption estimate on expansion in emerging economies. The International Energy Agency (IEA) last week upgraded its demand prediction. Crude also climbed as the dollar fell to the lowest against the euro since August 2008.
?Opec revised up its global oil consumption forecast for 2010 and that comes on the back of the IEA revising up their forecast,? said Ben Westmore, an energy and minerals economist at National Australia Bank Ltd. in Melbourne. ?It is further fueling the sentiment that the demand outlook is better than what a lot of people are expecting.?
Crude oil for November delivery gained as much as 81 cents, or 1.1 percent, to $74.96 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $74.77 at 9:27 a.m. Singapore time. Prices last reached $75 on August 25, the highest since October. Oil has risen 68 percent this year.
Total crude consumption will increase 700,000 barrels a day to 84.93 million barrels a day next year, led by demand from emerging markets, Opec said in a monthly report. That"s 370,000 barrels a day higher than the group"s previous forecast.
This year, the group estimates demand will contract by 1.4 million barrels a day to 84.24 million barrels a day.
The US currency traded at $1.4846 per euro at 8:59 a.m. in Tokyo from $1.4854 in New York, when it reached $1.4876, the weakest since August 22, 2008.
A Department of Energy report is forecast to show US crude-oil and gasoline inventories increased last week, according to a Bloomberg News survey.
The department is scheduled to release its weekly report on October 15 at 11 a.m. in Washington, a day later than usual because of the Columbus Day holiday.
On October 9, the IEA upgraded its forecast for 2010 demand growth to 1.4 million barrels a day. The Paris-based agency advises 28 nations on energy policy and estimates consumption next year at 86.1 million barrels a day.
Brent crude oil for November settlement rose as much as 60 cents, or 0.8 percent, to $73 a barrel on the London-based ICE Futures Europe exchange, and traded at $72.93 at 9:26 a.m. Singapore time. The contract gained $1.04, or 1.5 percent, to settle at $72.40 Tuesday.