| Robust Chinese car figures help lift crude to $70 |
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| Wednesday,June 10,2009 Posted: 12:08 BJT(0408 GMT) |
| From:Financial Times Article type:Reproduced |
Oil prices rose back towards hit $70 a barrel yesterday, spurred by a weakening US dollar and strong car sales figures from China.
Nymex July West Texas Intermediate, the US crudeoil benchmark, flirted with came close to last Friday's seven-month high of $70.32, by gaining $1.92 to $70.01 a barrel.
Oil prices have rallied sharply since February in line with equities and credit markets as investors started to position themselves for global economic recovery powered by Chinese consumption.
News yesterday that vehicle sales in China rose by 34 per cent last month fed into the recovery narrative, with some investors interpreting the data as a signal that fuel demand would increase over the medium- term.
Market expectations that weekly crude stocks data, released today, would show a fall in the country's inventories also helped bolster oil.
Analysts have forecast that data from the US Energy Information Administration, the oil statistical arm of the US government, to will show that crude stocks fell by 400,000 barrels, according to a poll conducted by Reuters.
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