Oil rises above $78 on economic growth optimism


THURSDAY, 22 JULY 2010 01:16      


Oil rose above $78 a barrel on Wednesday after Tuesday’s strong U.S. corporate earnings raised optimism over the strength of economic recovery in the world’s largest economy.U.S. crude for September, the front-month contract after Tuesday’s expiry of August, rose 53 cents to $78.11 a barrel, before dipping to $77.83.


London ICE Brent futures gained 34 cents to $76.56. The optimism that started on Wall Street on Tuesday spread to European and Asian equities on Wednesday. Sentiment was helped by strong earnings from Apple and speculation that Fed Reserve chairman Ben Bernanke may suggest steps to spur lending in testimony to U.S. lawmakers later on Wednesday.


Investors should have a clearer picture of how well U.S. businesses are recovering following the economic meltdown, from a flurry of companies reporting second-quarter results later on Wednesday, including financial services group Wells Fargo and investment bank Morgan Stanley.


Source: BusinessDay



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