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Rising Demand for Crude Oil & Gold Spurs Prices

May 21, 2011 at 1:02 by Vladimir Vyun

Crude oil jumped as demand grew. The American Petroleum Institute reported that consumption increased to 19.9 million barrels per day in April from a year ago. The coming Memorial Day on May 30 can cause a short-term spike in fuel consumption as air travels will increase. Contract for delivery of crude oil in June rose $1.05 to $99.49 per barrel on NYMEX. July contract for Brent crude gained $0.97 (0.9 percent) to $112.39 per barrel on ICE.

Gold climbed after Fitch Ratings downgraded Greece’s credit rating, increasing demand for the precious metal a safe haven. Fitch cut Greece’s rating to ‘B+’ and put it on negative watch. The rating agency wrote:

The ‘B+’ rating incorporates Fitch’s expectation that substantial new money will be provided to Greece by the EU and IMF and that Greek sovereign bonds will not be subject to a ‘soft restructuring’ or ‘re-profiling‘ that would trigger a ‘credit event’ and default rating from Fitch.

June futures for gold delivery went up as much as $16.50 (1.1 percent) to $1,508.90 as of 13:49 on COMEX.

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