Oil prices bounce, new gold record
Thursday, 8 October 2009 16:55Oil price rose this evening, supported by better than expected economic data and a weaker US dollar. US crude rose $2.03 to $71.60 a barrel, while London Brent climbed $2.21 to $69.41.
Aluminium producer Alcoa posted a surprise profit while major US retailers reported a pick-up in September sales, lifting hopes for an economic recovery. Unemployment claims also dropped to a nine-month low last week, the US Labor Department said.
The dollar fell broadly against a basket of currencies as firmer equity markets fuelled demand for riskier assets. A weaker dollar supports oil because it makes commodities priced in the currency cheaper for those holding alternative currencies.
The gains in crude oil futures reversed a drop of almost 2% in the previous session after US government data showed a larger than expected rise in petrol and distillate stocks last week, fanning doubts over the pace of fuel demand recovery in the world's largest energy consumer.
Meanwhile, gold prices hit yet another record high point of $1,058.48 an ounce in London this morning.
