US crude futures rise on positive company news, euro hopes

25 October 2011 10:23  [Source: ICIS news]

SINGAPORE (ICIS)--US crude futures rose by more than $1/bbl on Tuesday to their highest level since early August buoyed by a weaker dollar, upbeat news on US companies and hopes of a plan to resolve the eurozone debt crisis.

At 08:52 GMT, December NYMEX light sweet crude futures (WTI) were at $92.78/bbl, up by $1.51/bbl from the previous close.

Earlier, the US benchmark rose to a session high of $92.99/bbl, up by $1.72/bbl and the highest level since 4 August this year.

December Brent crude on London’s ICE futures exchange was trading at $111.53/bbl, up by 8 cents/bbl from the previous close.

Earlier, the North Sea benchmark rose to a session high of $112.07/bbl, up by 62 cents/bbl.

The US dollar softened against the euro and other leading currencies, making dollar-denominated commodities, such as crude, more attractive to overseas investors.

Crude futures prices have risen this week amid expectations that European leaders will agree on a plan to resolve the eurozone debt crisis. The leaders met over the weekend and are expected to have a final meeting on Wednesday.

US crude values were further boosted by positive news and earnings data from US companies including Caterpillar, Texas Instruments and FedEx.

Gains in ICE Brent futures were far more modest than those for WTI futures, with Brent values pressured in part by the easing of supply worries for light sweet grades following the resumption of some Libyan exports.

Analysts have forecast that weekly US inventory data due out later this week will reveal a drawdown in gasoline and distillate inventories, although stocks are expected to rise.

By: James Dennis
+65 6780 4359

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