Oil Leads Commodities Rebound


Crude oil rose more than $6 a barrel as investors sought the safety of the commodity on concern that the credit crisis will deepen, leading more financial institutions to fail.

Brent crude oil for November settlement rose $5.73, or 6.4 percent, to $94.95 a barrel on London's ICE Futures Europe exchange. Prices dropped the past 14 days, the longest stretch since the contract was introduced in 1988.

Natural gas futures advanced more than 8 percent, the biggest increase in more than a year, as commodities gained after the Federal Reserve's rescue of American International Group Inc.

The futures had lost almost half their value since early July on signs of lower demand. Prices also rebounded on concern production disruptions caused by hurricanes Gustav and Ike will leave supplies of the heating fuel lower forecast before demand picks up with colder weather.

Gold surged the most in nine years as investors sought the safety of precious metals on concern that the credit crisis will deepen, leading more financial institutions to fail. Silver soared the most since 1979.

Gold futures for December delivery gained $70, or 9 percent, to $850.50 an ounce on the Comex division of the New York Mercantile Exchange. The percentage gain was the biggest for a most-active contract since Sept. 28, 1999. The metal reached a record $1,033.90 on March 17.

Silver futures
for December delivery rose $1.158, or 11 percent, to $11.675 an ounce, the biggest gain since Dec. 31, 1979. Gold is up 1.5 percent this year, while silver still is down 22 percent.


TradingEconomics.com, Bloomberg.com
9/17/2008 1:17:51 PM