Crude Oil Advances in New York as Investors Avoid Stocks

Has Wall Street moved away from the Sub-Prime Mortgage mess to oil, thus raising the price?


July 3 (Bloomberg) -- Crude oil advanced in New York as investors sought an alternative to tumbling stock markets.

Oil has advanced more than 50 percent this year, while equity indexes and the U.S. currency have declined. Crude pared gains today after the European Central Bank raised interest rates, in line with expectations. Summer maintenance at North Sea oil fields is limiting European crude supplies, further supporting prices.

``The weaker dollar theme is likely to persist and influence most markets today,'' London-based Sucden (U.K.) Ltd. analyst Andrey Kryuchenkov said. ``In the longer run, crude prices are still well supported by geopolitical concerns, persistent supply disruptions and fears over tight supplies.