US crude rises $1/bbl on German economy, weaker US dollar

13 August 2010 08:42  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures rose Friday with US crude up more than $1/bbl at one stage, supported by a softer US dollar, upbeat economic news from Germany, and gains in Asian equity markets.

At 07:08 GMT, September NYMEX light sweet crude futures were up 93 cents/bbl at $76.67/bbl.

Earlier, the contract rose to an intra-day high of $76.74/bbl, up $1.00/bbl.

At the same time, September Brent on London’s ICE futures was trading at $76.29/bbl, up 77 cents/bbl. This followed a session high for the North Sea benchmark of $76.43/bbl, up 91 cents/bbl.

The price rise on Friday follows sharp declines in the previous three trading sessions which were driven by worries over a slowdown in the global economy and the resultant negative impact on demand.

The US dollar moved off recent highs on Friday as the euro strengthened amid positive news on the German economy which grew by a record 2.2% in the second quarter, the fastest such rise in more than 20 years and supported by strong export levels.

The decline in the US dollar served to make dollar-denominated commodities such as crude more expensive for overseas investors.

Meanwhile, Asian equity markets gained some ground with the Nikkei-225 in Japan up 0.44% as bargain hunters re-entered the market after recent falls.

($1 = €0.78)

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By: James Dennis
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