Commodities: Oil gains 2.5% as dollar pulls back

Date: Wednesday 10 Feb 2010

US crude oil bounced 2.5% on Tuesday after the dollar pulled back against the euro as concern about Greece’s debt crisis abated.

Crude for March delivery settled $1.86 higher at $73.75 a barrel in trading at the New York Mercantile Exchange.

Crude enjoyed a particularly strong day after last week’s sharp decline on reports that European Central Bank president Jean-Claude Trichet will leave a meeting in Sydney early for talks with European Union leaders on Thursday.

Speculation is mounting that EU leaders are poised to help Greece lower its debt. The safe haven qualities of the dollar were in strong demand last week amid growing concern that debt worries in Greece, Portugal and Spain will hamper economic recovery in Europe.

Gold futures also rallied on Tuesday with gold for April delivery settling $11 higher at $1,077.20 an ounce in New York.

Again the softer dollar and the stronger euro fuelled interest in the precious metal and commodities as a whole amid increasing bailout hopes for Greece.

Silver for March delivery rose 35 cents to $15.44 an ounce while March copper advanced 8 cents to $3 a pound.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE