Wednesday, January 6, 2010

Oil rises to near $82 on stocks, cold weather

The Jakarta Post , Tokyo | Tue, 01/05/2010 7:36 PM | Business

Oil rose to near $82 a barrel Tuesday after a jump in U.S. stock markets boosted investor confidence and helped extend a four-week rally in crude prices.

By early afternoon in Europe, benchmark crude for February delivery was up 8 cents to $81.59 a barrel in electronic trading on the New York Mercantile Exchange. The contract climbed $2.15 to settle at $81.51 on Monday.

Oil traders often look to stock markets as a measure of overall investor sentiment, and equities rose in the first trading day of 2010 as investors eyed signs of improvement in U.S. and Chinese manufacturing.

The Dow Jones industrial average rose 1.5 percent on Monday while the Standard & Poor's 500 index gained 1.6 percent. Most major Asian and European stock indexes were up Tuesday.

"Should the stock market maintain its upward momentum amid a further weakening of the dollar, it appears that the oil complex should be well equipped to advance further," Galena, Illinois-based Ritterbusch and Associates said in a report.

Crude prices also rose due to colder weather in the U.S., which traders expect will spur higher demand for oil products such as heating oil.

"On the weather front, the U.S. might experience its coldest winter since the 1980s," said JBC Energy in Vienna. "In Britain, the freezing cold temperatures are also likely to continue, after a record cold December."

Oil has surged about 15 percent since mid-December.

In other Nymex trading in February contracts, heating oil rose 0.15 cent to $2.1920 a gallon and gasoline gained 0.36 cents to $2.1080 a gallon. Natural gas was down 9.6 cents to 5.788 per 1,000 cubic feet.

In London, Brent crude for February delivery rose 9 cents to $80.21 a barrel on the ICE Futures exchange.


  1. we expect a positive impact for Indonesia

  2. salam sahabat
    wah....oil can be rise???/ehm its really good info thnx s n good luck ya