Oil creeps higher to near $77 as equities rise

[September 27, 2010]  SINGAPORE (AP) -- Oil prices crept higher to near $77 a barrel Monday in Asia, boosted by a rally in global stock markets.

Benchmark crude for November delivery was up 36 cents to $76.84 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.31 to settle at $76.49 on Friday.

A surprise jump in U.S. durable goods orders and corporate spending drove Wall Street higher on Friday and carried over to Asian trading on Monday. The Dow Jones industrial average rose 1.9 percent Friday and all major Asian stock indexes advanced, led by a 1.4 percent increase in Japan.

European shares also gained in early trading Monday.

Oil traders often look to stock markets as a barometer of overall investor sentiment.

Investors will be closely watching the latest indicators on U.S. consumer confidence Tuesday and second quarter gross domestic product Thursday, figures "which could make or break the equities rally," energy consultancy The Schork Report said.

In other Nymex trading in October contracts, heating oil rose 0.72 cent to $2.138 a gallon and gasoline gained 0.26 cent to $1.95 a gallon. Natural gas plunged 10.9 cents to 3.772 per 1,000 cubic feet.

In London, Brent crude rose 3 cents to $78.90 a barrel on the ICE Futures exchange.

[Associated Press; By ALEX KENNEDY]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.