Thursday, July 21, 2011

Oil Trades Near Highest in a Week After U.S. Labor Data, Weaker Dollar

Oil traded near the highest level in one week in New York after jobless claims in the U.S. rose more than forecast, weakening the dollar and making crude attractive for protecting against inflation.

Futures for September delivery advanced as high as $98.83 a barrel, reversing an earlier decline to $97.20, as the Labor Department said that applications for jobless benefits in the week ended July 16 increased by 10,000 to 418,000. The U.S. currency dropped 0.5 percent to $1.42 against the euro, making dollar-priced assets such as crude appear cheaper. Oil fell earlier on signs of slower manufacturing in China, the world’s largest energy consumer.

Crude for September delivery was at $98.71 a barrel in electronic trading on the New York Mercantile Exchange, up 31 cents, at 1:38 p.m. London time. It gained as much as 0.4 percent, having earlier tumbled 1.2 percent.

Brent oil for September settlement on the London-based ICE Futures Europe exchange was at $118.04 a barrel, up 11 cents.(Bloomberg)

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