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
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
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
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 (
) will by Atlas Energy Inc (
) 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
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 (
) 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.