Oil Trades Near Week’s High on Euro Pledge, U.S. Economy Outlook


27/07/2012 09:48 AST  Bloomberg

Oil rose from the highest close in almost a week in New York after the head of the European Central Bank predicted the euro will survive and reports signaled improving economic prospects in the U.S. and China.

Futures were up as much as 0.6 percent after climbing for a third day yesterday. ECB President Mario Draghi said policy makers will do whatever is needed to preserve the European common currency. U.S. reports showed bookings for durable goods climbed more than projected and fewer Americans than forecast filed first-time unemployment claims. Profits at industrial companies in China fell at a slower rate than previous months.

“The big thing for risk markets generally was Mario Draghi’s statement,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “The implications of that for commodities like oil are that if we can restore some confidence in the markets, then that is a positive for demand.”

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