Energy shares up on oil rise
A decline in domestic supplies and hopes for an economic recovery pushes oil higher.
Crude oil jumped to $71.33 today, up 1.9% from Tuesday and part of that big continuing rally this year.
Crude's $70.01 close on Tuesday was its first since Nov. 4.
Oil has risen more than 57% this year, with a big jump recently, partly because speculators think that the global economy is starting to recover, which in turn, could boost demand for oil.
Oil's price is still less than half of the all-time high of $147.27 a barel reached on July 11, 2008.
Wholesale gasoline futures closed at $2.0153 a gallon, up 2.5% from Tuesday and up nearly 100% on the year.
That's why the retail price of gasoline has jumped 62% this year to $2.627 a gallon, according to AAA's Daily Fuel Gauge Report.
Gasoline inventories fell by 1.6 million barrels last week, and distillate stocks fell by 300,000 barrels, the EIA report said.
Other commodities also moved higher today on fresh evidence that China's economy is recovering, along with improved outlooks around the world.
Gold briefly rose above $960 an ounce today, as investors hedged against inflation from the surge in oil prices.
Gold finished at $954.70 an ounce, unchanged from Tuesday.
"Commodity stocks look attractive because many of them have declined below their intrinsic value and we expect the global demand for commodities to continue its long-term growth," Mark Mobius of Templeton Asset Management said.
The decline in the U.S. dollar had also contributed to oil's gains. Crude prices are denominated in dollars and generally rise when the dollar declines.
"When optimism about the global economy is out there, people feel less need to hold the dollars which they have accumulated for a rainy day," Akio Yoshino, chief economist in Tokyo at Société Générale Asset Management, told Bloomberg News.
"The dollar is likely to remain under pressure."
|Energy prices -- New York close|
|Wed.||Tues.||Month chg.||YTD chg.|
|(per mil. BTY)|
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages posted solid gains ahead of tomorrow's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index.
Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'