BEST SUPRATRADE STOCK PREDICT: Commodities: Oil back above $75

Friday, June 11, 2010

Commodities: Oil back above $75

Date: Friday 11 Jun 2010

Oil prices topped $75 a barrel for the first time in a month on Thursday as the European Central Bank (ECB) soothed fears about eurozone demand, putting pressure on the dollar.

ECB president Jean-Claude Trichet said there were no plans to increase the central bank’s bond purchase programme, indicating a confidence in the current economic situation.

Crude for July delivery rose by $1.10 to $75.48 in New York, with investors rediscovering their appetite for risk.

The black stuff had already rallied over 3% Wednesday on news of a surge in China's exports, a drop in US inventories, and OPEC’s expectations for higher global oil demand in 2010.

On the metal markets, gold lost its shine. Traders blamed a strong euro and comments from the Chinese that the yellow metal isn’t considered suitable for asset allocation.

Gold for August delivery fell $7.70 to $1,222.20 an ounce, moving further away from Tuesday’s record close of $1,245.60.

But there was better news elsewhere. July silver managed to recoup some of the previous session’s losses, while copper also improved slightly.

Platinum attracted buyers, but palladium was out of favour.