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Oil rises above $82 as dollar weakens - Daily News Egypt

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Oil rises above $82 as dollar weakens

LONDON: Oil rose above $82 a barrel on Monday, gaining for a second session as the US currency weakened after a Group of 20 meeting. The dollar dropped, hitting a 15-year low against the yen, as the G20 agreement to shun competitive currency devaluations was taken by investors as a go-ahead to resume dollar selling. …


LONDON: Oil rose above $82 a barrel on Monday, gaining for a second session as the US currency weakened after a Group of 20 meeting.

The dollar dropped, hitting a 15-year low against the yen, as the G20 agreement to shun competitive currency devaluations was taken by investors as a go-ahead to resume dollar selling.

US crude for December climbed 66 cents to $82.35 a barrel at 1130 GMT, around $2 from a five-month high of $84.43 reached on Oct. 7. ICE Brent added 54 cents to $83.50.

"People are still selling dollars after the G20 meeting and that is putting upside pressure on commodities," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.

Among other commodities, gold rose more than 1 percent, palladium hit its highest in nearly a decade and copper reached a 27-month high in London.

Analysts said the G20 outcome suggested a return to the pre-existing status quo in currency markets, with the dollar staying under pressure due to expectations the Federal Reserve would unveil a second round of quantitative easing as early as November.

Investors are waiting for a speech by US Federal Reserve Chairman Ben Bernanke at 1230 GMT.

Oil has also been supported by strikes in France over pension and port reforms, which have reduced fuel supplies.

Workers at seven out of France’s 12 refineries voted to continue striking on Monday, but two of the other five plants could vote to end their action, union officials said.

Oil traders were keeping an eye on the potential for weather disruption to supplies in the Gulf of Mexico.

Hurricane Richard was downgraded to a tropical storm on Monday as it moved across northern Guatemala and southeastern Mexico after battering Belize.

The storm was expected to further weaken to a tropical depression before it enters Mexico’s Bay of Campeche on Monday night or early Tuesday, the US National Hurricane Center said. –Additional reporting by Alejandro Barbajosa in Singapore

 

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