Date: Wednesday 14 Jul 2010
Crude oil futures surged nearly 3% on Tuesday as Alcoa’s results boosted market confidence and traders cheered an International Energy Agency report predicting an increase in oil demand and higher oil prices next year.Crude for August delivery rose $2.20 to $77.15 a barrel on the New York Mercantile Exchange.
The IEA predicted that global oil demand would increase by 1.6% in 2011, assuming that the economic recovery remains on track. Company earnings also boosted appetite for oil.
Aluminum giant Alcoa beat analyst expectations with underlying profits of $137m, in the three months ended 30 June, and said aluminium demand will grow this year. The group’s results lifted hopes of higher demand for energy products.
Oil also moved in unison with strong gains on Wall Street on the view that as the recovery continues, demand for oil will pick up. The weaker dollar also supported commodity prices.
Gold made headway on Tuesday, as jitters about Portugal’s debt downgrade prompted a flight to its safe haven qualities.
Comex gold for August delivery settled $14.80 higher at $1213.50 an ounce on the New York Mercantile Exchange.
Fresh fears about European debt revived interest in the precious metal while bargain hunters moved in following last week’s 1.1% decline.Silver closed up 34 cents at $18.26 an ounce while platinum for October added $20.10 to $1,535.40 an ounce.
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