 Financeroll.com - Crude oil was little changed near $77 a barrel after rising yesterday as traders bought back futures contracts amid speculation credit losses in Dubai won’t derail the global economic recovery.
Oil advanced 1.6 percent yesterday after the Institute for Supply Management-Chicago Inc. said its business barometer climbed to 56.1, the highest level since August 2008. China’s manufacturing growth held at the fastest pace in 18 months in November.
Crude oil for January delivery was at $77.24 a barrel, down 4 cents, in electronic trading on the New York Mercantile Exchange. Yesterday, the contract increased $1.23 to settle at $77.28 a barrel. Futures have gained 73 percent this year.
Oil traded near $78 a barrel on Nov. 25 before Dubai World, one of the emirate’s three largest state-linked holding companies, sought to delay payments on its $59 billion of debt and other liabilities. Easing concerns over a potential default prompted the dollar to fall against higher-yielding currencies.
The U.S. currency declined for a second day against the euro, bolstering the investment appeal of commodities including gold. It was at $1.5013 per euro at 10:46 a.m. in Tokyo, from $1.5005 yesterday in New York.
Oil also climbed yesterday after two separate maritime incidents. Somali pirates captured the Greek-owned Maran Centaurus supertanker carrying 2 million barrels of crude oil to the U.S. Iran’s navy stopped a British yacht and detained the crew, the U.K. government said.
Stockpiles of distillate, which include heating oil and diesel, are expected to have fallen 350,000 barrels, a third weekly decrease. Gasoline inventories likely rose 900,000 barrels.
Brent crude oil for January settlement on the London-based ICE Futures Europe exchange traded at $78.50 a barrel, up 3 cents, at 9:59 a.m. in Singapore. Yesterday, the contract rose 1.7 percent to $78.47 barrel, the highest since Nov. 18.
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