Alien Business

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MELBOURNE, Crude oil was little changed, not far from the level of U.S. $ 73 per barrel this morning after a rise yesterday lifted by increase in stock market sentiment and a weakening U.S. dollar prompting the appeal of commodities as a hedge for inflation.

Rising stock market encouraged by American International Group Inc. led the increase in the U.S. financial group and Boeing stock that will do 787 Dreamliner's first flight this year. Developments that brought the oil rebounded from the lowest level of U.S. $ 69.83 yesterday.

"Oil falls through the level of U.S. $ 70 per barrel, before rising driven by improved stock market. Boeing is clearly a motivator for the Dow," said Mike Sander, Sander's investment adviser to Capital in Seattle.

Crude oil for October delivery rose U.S. $ 0.10 to U.S. $ 72.59 per barrel on the New York Mercantile Exchange at 9:03 am Sydney time. Yesterday, the contract rose U.S. $ 1.06 or 1.5% to U.S. $ 72.49.

Standard & Poor's 500 Index increased 2.86 points and the Dow Jones Industrial Average added 37.11 to 9580.63. The euro traded at U.S. $ 1.4346 at 6:09 a.m. in Tokyo.

Report showing U.S. economic contraction less than the estimate for the second quarter due to an increase in government spending also supported oil prices. The total number of people collecting unemployment insurance fell to the lowest level since April, a sign the economy out of recession.

Brent crude oil for October rose 1.2% to U.S. $ 72.51 per barrel on the London ICE Futures Europe Exchange.