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		<title><![CDATA[Crude Oil Futures Trading Forum by Live Oil Prices - US crude oil futures surge as US economy seen improving]]></title>
		<link>http://www.liveoilprices.co.uk/forum/topic436-us-crude-oil-futures-surge-as-us-economy-seen-improving.html</link>
		<description><![CDATA[The most recent posts in US crude oil futures surge as US economy seen improving.]]></description>
		<lastBuildDate>Wed, 16 Sep 2009 06:40:00 +0000</lastBuildDate>
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			<title><![CDATA[US crude oil futures surge as US economy seen improving]]></title>
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			<description><![CDATA[Crude futures shot up Tuesday on strong US retail sales and an improving economic outlook.

Light, sweet crude for October delivery settled $2.07, or 3%, higher at $70.93 a barrel on NYMEX. Brent crude on the ICE futures exchange settled 9 cents, or 0.1%, lower at $67.35 a barrel.

The US Commerce Department reported a larger-than-expected increase in retail sales in August, and Federal Reserve Chairman Ben Bernanke added to the optimism sweeping equities and commodities market by calling the recession "very likely over." As a result, U.S. equity indexes broke through to new 2009 highs, with the Dow Jones Industrial Average recently up 0.6% at 9,685.

Equities have provided a general roadmap for investors wondering whether the coming months will bring an improving world economy that increases oil consumption. Global oil demand plunged during the worst of the downturn earlier this year, and despite pockets of recovery has yet to fully rebound.

A weakening dollar helped transform mild gains into a full-on charge past $70 a barrel. Oil and other commodities priced in US currency become a relatively inexpensive buy when the dollar slips against other currencies, making crude futures a popular hedge against inflation. The dollar was recently at $1.4686 to a euro, a low for the year.

"These (investors) ... are looking for a safe haven to hedge their dollar risk or to get a hold on a recovering economy, and they're out there just getting whatever's cheapest," said Carl Larry, president of Oil Outlooks and Opinions in Houston.

Crude futures now look set to make another run at $75 a barrel, last hit in intraday trading on Aug. 25. Numerous rallies have been cut short below that price, as the market is still saddled with a massive surplus of oil and fuel built up over the last year.

The fall is usually not the time for inventories to draw down, even with the economy in recovery. U.S. gasoline demand, about 10% of total world oil consumption, typically falls in September with the end of the summer vacation season, while the weather isn't cool enough to create a need for fuels used in home heating.]]></description>
			<author><![CDATA[dummy@example.com (oil prices)]]></author>
			<pubDate>Wed, 16 Sep 2009 06:40:00 +0000</pubDate>
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