Oil rose for a third session today to hit the highest in more than three weeks near $69 a barrel as stock markets gained on hopes of an economic recovery that would boost fuel demand.
European stocks advanced following gains in Asia, where equities rose for the ninth day in 10 as investors focused on better corporate earnings and moving money into riskier, higher yielding assets.
US crude, which has risen in eight of the last nine trading days, climbed 69 cents to $68.74 by 8am Irish time. Prices hit an intraday high of $68.99, the highest since July 2nd. Brent crude rose 79 cents to $71.11.
Oil and other commodities have tracked equities markets in recent months as analysts seek signs of the economic outlook after the downturn cut world energy demand for the first time in a quarter century.
In addition to earnings from companies such as Exxon Mobil, Honda and Mitsubishi UFJ Financial, analysts said investors will also look out for U.S. gross domestic product data to see if a second-half recovery is on track.
A faster rebound in Asian economies, led by China, would offer further support for oil prices in coming months, some analysts said.
Oil has more than doubled since falling to $32.40, the lowest in more than four years, in December, due in part to supply curbs by the Organization of the Petroleum Exporting Countries.
Despite the rally, speculators have pared back bullish bets in the crude market, cutting net long positions to a scant 2,218 lots in the week to July 21st, regulatory data showed.
Reuters