Oil rebounded from its lowest level in more than six weeks as European stocks rose before a conference call among finance ministers and on speculation that supplies from the Middle East will be disrupted.
Oil gained as much as 1 percent as euro-area finance ministers will seek to meet a self-imposed deadline for drawing additional aid to the debt crisis. Eleven countries in a coalition that includes the U.S. will meet tomorrow in Rome to discuss harder tactics on Iran, the Wall Street Journal reported, citing people it didn’t identify.
“It does seem that people are a little more sanguine about Europe,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “Tomorrow’s meeting on Iran sanctions is probably top on people’s list of concern.”
Crude for January delivery gained 67 cents, or 0.7 percent, to $94.20 a barrel at 9:24 a.m. on the New York Mercantile Exchange. The contract, which expires tomorrow, fell to $93.53 on Dec. 16, the lowest settlement since Nov. 2. The more actively traded February contract rose 63 cents to $94.38.
Brent oil for February settlement on the London-based ICE Futures Europe exchange increased 87 cents, or 0.8 percent, to $104.22 a barrel.
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Canada’s Dollar Rises From Almost December Low as Crude Oil Trades Higher
Canada’s dollar appreciated from almost the lowest level this month versus its U.S. counterpart as crude oil and stocks advanced, brightening the outlook for currencies tied to growth.
The Canadian currency, also known as the loonie, gained after falling the most last week since the five days through Nov. 4 on speculation European leaders are failing to contain the region’s debt crisis. The loonie was supported as Canada’s statistics agency said wholesale sales rose in October more than economists forecast.
“We’re still in consolidation mode from late last week,” said Blake Jespersen, director of foreign exchange in Toronto at Bank of Montreal, in an e-mail message. “The tone appears a bit better today.”
Canada’s currency appreciated 0.3 percent to C$1.0355 per U.S. dollar at 9:37 a.m. in Toronto after declining to C$1.0415, the weakest level since Dec. 14, when it reached the low for the month of C$1.0424. One Canadian dollar buys 96.61 U.S. cents. The loonie dropped 2.1 percent last week.
Crude oil for January delivery on the New York Mercantile Exchange was up 0.5 percent to $94.24 a barrel. The Standard & Poor’s 500 Index rose 0.4 percent.
“A rally in European and U.S. equities attracted interbank selling interest in the U.S. dollar versus the Canadian dollar,” said George Davis, chief technical analyst for fixed-income and foreign-exchange strategy in Toronto at Royal Bank of Canada, in a note to clients today.
