Light oil price trades up four percent, now in $77 range

Light crude oil prices surged in heavy trading on Tuesday and is in the $77 range as the US dollar lost ground against the euro and a series of upbeat data and earnings reports were boosting broader sentiment.

US light crude oil futures climbed $3.06, or 4.1%, its biggest daily jump in more than four months to $77.19 a barrel on the NYMEX, while in London, Brent crude oil futures gained $3.46 to $75.97 on the ICE Futures Exchange.

The US dollar fell more than a cent against the euro to $1.373. Against the pound, it fell half a cent to $1.5714. A weaker dollar makes oil cheaper for buyers in other currencies.

Oil prices were “supported by a weakening US dollar as the euro strengthened,” said Myrto Sokou, oil analyst at Sucden Financial. Darin Newsom, senior commodities analyst at Telvent DTN, said the dollar weakness is lifting commodity prices as investors flock to riskier asset classes, but seasonal factors cannot be ignored.

“Yes, the dollar came down, so you’ve got money coming into commodities right now,” he said.

Commodities and stocks also rose after manufacturing in the New York region grew at the fastest pace in four months as companies boosted payrolls in anticipation of accelerating orders and sales.

“Oil is rising because the euro is stronger and the stock market is up,” said Adam Sieminski, chief energy economist at Deutsche Bank AG in Washington. “There’s not any oil-related news behind this move.”

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