Oil Rises as Dollar Weakens, IEA Sees China Demand Surging; Gold Gains on Gold Standard Talk

By MidnightTrader.com Staff,

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Oil is on the rise in early morning trade as the dollar lost ground and traders await the release of the latest U.S. crude inventories data, one from the American Petroleum Institute later in the day, and another by the Department of Energy Wednesday morning. In addition, the International Energy Agency reported that demand from China will drive up global energy use over the next 25 years.

Gold too is up as it continues to reach record levels, particularly after World Bank President Robert Zoellick encouraged finance ministers worldwide to adopt the gold standard as a new monetary system.

At 0755 ET, Brent crude is up 0.3% at $88.70 a barrel, while light sweet crude is up 0.4% at $87.41 a barrel, and natural gas is up 1.2% at $4.14 a million British thermal units.

Gold is up 1.1% at $1,419.00 an ounce, while silver is up 3.8% at $28.47 an ounce, and copper is up nearly 2% at $4.04 a pound.

The Paris-based IEA said that Chinese demand will surge 75% from current levels that will bring overall global energy use to 16.7 billion metric tons of oil equivalent by 2035.

Chevron Corp ( CVX ) will by Atlas Energy Inc ( ATLS ) for $4.3 billion which will boost Chevron's stake in the Marcellus shale fields. Chevron will pay $43.34 a share for Atlas, which marks a 37% premium over the company's closing price Monday.

Speculation is growing that Woodside Petroleum Ltd (WPL) will be the target of a takeover after Royal Dutch Shell plc (RDSA) reduced its stake in the Australian energy producer. Monday, Shell told a 10% stake in Woodside for $3.3 billion, and rumors are abound that it will sell off its remaining 24.27% stake in the company.

In the mining sector, Randgold Resources Ltd ( GOLD ) reported third quarter profit surging on the back of record gold prices, and the mining group lifted its fourth quarter outlook as it starts operations at its new Tongon mine in the Ivory Coast.

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

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: ATLS , CVX , GOLD

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