Commodities: Crude moves towards $80

Date: Monday 01 Mar 2010

Crude oil rose on Friday, settling just below $80 a barrel, following a mixed batch of economic data and as the dollar weakened against major currencies.

Crude oil for April delivery settled up $1.49 at $79.66 a barrel on the New York Mercantile Exchange.

The government said fourth-quarter GDP rose at an annual rate of 5.9% compared to a preliminary estimate of 5.7%. Disappointing consumer sentiment and housing data weighed against better than expected manufacturing figures.

Meanwhile the dollar drifted lower against the euro on Friday after a media report said a German bank may help Greece out of its debt crisis.

Oil, which is priced in dollars, often rises in demand when the greenback falls.

However analysts believe, moving ahead, crude oil prices will be dominated by moves in supply and demand. Midweek the US Energy Information Administration revealed that US crude stockpiles showed a build of 3m barrels to 337.5m barrels for the week ending 9 February.

Comex gold for April delivery added $10.40 to settle at $1,118.90 per ounce as the dollar fell against the euro. Silver for March delivery rose 39 cents to $16.50 an ounce.

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