Oil Rallies, Heads for Seventh Weekly Gain in New York, as Euro Rebounds

[Javaman]

http://www.bloomberg.com/news/2011-11-18/oil-heads-for-first-weekly-drop-since-september-on-european-debt-concern.html

Oil rose in New York as the euro strengthened amid speculation that European Central Bank buying of Italian and Spanish bonds will stem surging borrowing costs and mitigate the effects of the region’s debt crisis.

Futures rose as much as 1.4 percent, after dropping 3.7 percent yesterday. The euro advanced against the dollar while Italian and Spanish lending costs declined, following reports the European Central Bank bought the nations’ bonds. Oil, up 1 percent this week, is headed for its seventh straight weekly gain, the longest run in more than two years.

“The physical oil market remains fairly tight, which keeps supporting the market,” said James Zhang, London-based commodity strategist at Standard Bank Plc. “It also benefits from a recovery in euro.”

Crude for December delivery on the New York Mercantile Exchange rose as much as $1.35 to $100.15 a barrel and was at $99.95 as of 1:50 p.m. London time. The contract, which yesterday dropped $3.77 to $98.82, expires today. The more- active January contract gained $1.19 to $100.12 a barrel.

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