Oil Gains as Hurricane Worries Mount; Gold Lower


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Oil is on the rise in early morning trade on the back of a rebound in Asian equities. Stocks gained there on the back of prevailing bullish sentiment in China. Still, there are concerns about the near-term impact of tropical storm Danielle and any disruptions to drilling and transport in the Atlantic region. Worries about the pace of U.S. economic recovery continue to weigh on oil prices.

Gold, meanwhile, is lower as traders take a breather from shoring up the yellow metal. Gold is expected to trend higher in coming weeks nonetheless as concerns about the strength of the global economy continue to persist.

At 0755 ET, Brent crude is up 0.5% at $74.62 a barrel, while light sweet crude is up 0.3% at $74.07 a barrel, and natural gas is down 0.7% at $4.09 a million British thermal units.

Gold is down 0.1% at $1,227.90 an ounce, while silver too is down 0.3% an ounce, and copper is 0.4% weaker at $3.29 a pound.

South Korea's National Pension Service said it is interested in buying Chevron Corp's ( CVX ) 23.4% stake in Colonial Pipeline Co., and the agency is already in talks with the pipeline operator. Local media have reported that the fund will pay about $800 million for the stake.

Caltex Australia Ltd (CTX) reported a 50% decline in first half operating profit due to a strengthening of the Australian dollar. The country's largest oil refiner may cut jobs further to reduce costs.

Monday marks the beginning of the $20 billion compensation fund for economic victims of the Gulf of Mexico oil spill by BP plc ( BP ). Its administrator, Kenneth Feinberg, however, is already facing accusations that rules established to compensate claimants as it allows those filing for an emergency payment to also sue BP at a later date, but beyond that period claimants would forfeit the right to file against the company. Some have argued that such a rule will favor BP.

In the mining sector, BHP Billiton plc ( BHP ) is facing competition in its bid for Potash Corp of Saskatchewan Inc ( POT ). China's Sinochem Group and Vale SA of Brazil ( VALE ) are also reportedly interested in bidding for the fertilizer giant.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities
More Headlines for: BHP , BP , CVX , POT , VALE

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