Fuel Demand Optimism Driving KTC Capital Energy Investment Strategy
Energy analysts at London based KTC Capital are now bullish on oil as it traded near a two-week high in New York as Asian equities appreciated on signs of improved corporate equipment purchases, boosting the street's expectations of greater demand.
Online, September 27, 2010 (Newswire.com) - Durable goods orders in the U.S., not including volatiles, increased more than two percent, higher than markets anticipated. The Commerce Department recently confirmed the positive shift by reporting a more than four percent increase in capital equipment purchases last month after a slower than usual summer.
November contracts for light sweet crude were $76.78 a barrel on the Mercantile Exchange in after hours trading as it was bid up nearly a third of a cent by Asia traders. Oil prices, along with all commodities in general, were further boosted by a continued weakening of the dollar against the Euro.
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