Oil, little changed in New York, headed for a second yearly advance and its highest year-end close since 2007, as evidence the global economic recovery is gaining momentum stokes demand for raw materials.

Crude has risen 13 percent this year, extending last year’s 78 percent rally. Commodity prices have beaten gains in stocks, bonds and the dollar this year as China led a recovery from the first global recession since World War II.
“The market is still proving very resilient and appears to be stronger than the equity rally supporting it,” said Alexander Ridgers, head of commodities at London-based CMC Markets, which handles more than $150 million a day in U.S. crude contracts.
Oil for February delivery was at $89.67 a barrel, down 17 cents, on the New York Mercantile Exchange at 11:28 a.m. London time. Brent crude for February settlement was down 19 cents at $92.90 a barrel on the ICE Futures Europe exchange in London.
Futures had their biggest decline in a month yesterday, settling below $90 for the first time since Dec. 21, after a U.S. government report showed a smaller-than-forecast drop in crude inventories in the world’s biggest oil-consuming nation.
U.S. crude supplies decreased 1.26 million barrels to 339.4 million in the seven days ended Dec. 24, the Department of Energy said. That’s less than the median forecast for a 2.85 million-barrel drop in a Bloomberg survey of 14 analysts.
(Source: Bloomberg)