Crude Oil Rises From Seven-Week Low After U.S. Equities Recover
Crude oil rose in New York, paring the worst weekly decline since December, after equities gained on speculation governments will widen efforts to help consumers weather a deepening global recession.
Oil gained as much as 1.9 percent as Asian stock markets rallied following gains in the U.S. President Barack Obama plans to use government money to help cut mortgage interest rates, according to a person briefed on the proposal. Australia’s Senate today passed a A$42 billion ($28 billion) stimulus plan.
“To an extent, the equities market is seen as a reflection of confidence in the economic outlook and that affects crude prices,” said David Moore, a commodity strategist with Commonwealth Bank of Australia Ltd. in Sydney.
Crude oil for March delivery rose as much as 65 cents to $34.63 a barrel on the New York Mercantile Exchange. It was at $34.55 a barrel at 9:55 a.m. Singapore time.
Yesterday, futures fell $1.96, or 5.5 percent, to $33.98 a barrel, the lowest settlement since Dec. 19. It was the fifth consecutive daily decline.