Crude rallies on US growth signals

27 September 2010

Written by Bob Burton

Crude oil prices were rising for a third day on the New York Mercantile Exchange this morning (September 27th) after strong US industrial growth figures helped to support Asian equities.

Following a report released late on Friday by the Commerce Department showing a strong rise in industrial equipment orders, Asian markets were this morning pursuing a bullish trend in stocks, commodities and currencies.

By 01:41 Central Standard Time, the headline crude contract was selling at $76.60 a barrel, up 11 cents on Friday's closing price, while heating oil futures were also rising further above the $2.13-a-gallon mark.

Both commodities were under pressure last week amid further signs of demand weakness in the US last week.

David Taylor, an analyst at CMC Markets in Sydney, commented: "The durable goods orders reflect a bit more of a buoyant manufacturing sector and that's been a pivot point for the economy over the last six to 12 months."

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