Oil Rises for a Second Day

Crude oil rose in New York, heading for its biggest two-day gain in three weeks, on speculation the U.S. government will invest $125 billion in nine banks, helping to stave off a global recession.

Oil followed stock markets higher after people briefed on the package said the Bush administration will announce the first portion of a $700 billion rescue package approved by Congress. China, the world's second-largest energy user, increased crude oil imports by 10 percent in September to meet rising demand from refineries. Oil also gained as the dollar fell the most against the euro in three weeks.

Crude oil for November delivery rose as much as $3.64, or 4.5 percent, to $84.83 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $84.57 a barrel at 12:12 p.m. London time. Oil has climbed 7.3 percent in the past two days, the most since Sept. 22.

Prices are down 3.2 percent from a year ago and have dropped 43 percent from a July 11 record of $147.27 a barrel.

Brent crude oil for November settlement climbed as much as $3.23, or 4.2 percent, to $80.69 a barrel on London's ICE Futures Europe exchange. It was at $80.27 a barrel at 11:46 a.m. London time.

U.S. oil and gasoline inventories probably rose last week as production increased and refineries opened units that were shut last month because of Hurricanes Gustav and Ike, a Bloomberg News survey of analysts showed.

Crude oil stockpiles probably increased 2.6 million barrels in the week ended Oct. 10 from 302.6 million the week before, according to the median of 10 analyst estimates before an Energy Department report this week.

advanced in London as the dollar weakened against the euro, buoying demand for the metal as an alternative investment. Platinum also rose.

Gold for immediate delivery gained $11.85, or 1.4 percent, to $844.90 an ounce by 12:45 p.m. in London. Futures for December added $2.60, or 0.3 percent, to $845.10 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.

TradingEconomics.com, Bloomberg.com
10/14/2008 5:16:59 AM