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Crude Oil Rises, Nickel Falls on Demand Outlook

August 17, 2010 at 19:51 by Vladimir Vyun

Crude oil rose today as a rally of global stock markets improved confidence in sustainability of the global economic recovery, increasing demand for fuel. The S&P 500 rose 1.4 percent and the Dow Jones Industrial Average gained 1.2 percent. Oil also gained after the dollar dropped, increasing attractiveness of commodities as an alternative investment. September delivery for crude oil gained $1.16 (1.5 percent) to $76.40 per barrel by 11:23 on NYMEX.

Nickel prices fell on outlook that demand for stainless steel, the main source of consumption for the metal, would weaken. Demand from China, the largest consumer, will stay at 377,000 tons this year. Global nickel consumption will slow to 8.4 percent in this quarter, down by almost half from the previous quarter. Nickel spot price closed yesterday at $21,479 on LME. Prices may reach $17,030, the lowest level since February, before rebounding.

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