Oil Gains as Yuan Policy Increases Economic Recovery Optimism

Crude rose to the highest in six weeks on increased confidence in the global economic recovery after China, the world’s second-largest energy consumer, signaled an end to the yuan’s fixed rate to the dollar.

Oil climbed above $78 a barrel, extending last week’s 4.6 percent gain, after the People’s Bank of China indicated it’s abandoning the yuan peg adopted during the global financial crisis to shield exporters, a move that may boost the country’s purchasing power. The dollar traded near a four-week low against the euro, bolstering speculative demand for commodities, including gold.