Commodities: Oil gains on economic hopes

Date: Tuesday 09 Mar 2010

Crude oil settled modestly higher on Monday following last week’s better than expected US jobs report and as concerns about Greece’s debt problems fade.

Crude for April delivery rose 37 cents to settle at $81.87 a barrel after earlier hitting a high of $82.47 a barrel.

With economic data thin on the ground on Monday, Friday’s jobs report continued to lift hopes about a global economic recovery and an upturn in demand for oil. Market sentiment was also given a boost by comments from France’s Nicolas Sarkozy that the euro zone was willing to help Greece avert a default if needed.

However as Monday’s session progressed the dollar found support and wiped the shine off oil’s earlier gains.

Easing concern about Greece’s debt problems sent gold for April delivery down $11.20 at $1,124.60 per ounce on the New York Mercantile Exchange.

The precious metal was also undermined by the dollar’s gains against major currencies and as US stocks ended little changed.

The yellow metals has benefited in recent weeks from uncertainty surrounding Greece’s ability to repay its debt. However by Monday the mood about Greece had changed and coupled with Friday’s better than forecast jobs data, gold traders headed for the door.

Silver for April delivery closed 9 cents lower at $17.26 an ounce.

« 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