Sunday, September 12, 2010

Oil Rises For Second Day Amid Optimism About Economic Recovery in the U.S.

Crude oil rose for a second day in New York amid optimism demand for fuel will strengthen because of improved prospects for an economic recovery in the U.S., the world’s biggest crude consumer. Futures rose amid forecasts that retail sales probably gained in the U.S. during August for a second month, according to a Bloomberg News survey of economists before the Commerce Department’s Sept. 14 report. Prices increased the most in six weeks on Sept. 10 as China increased imports of crude and after a pipeline that carries Canadian oil to refineries in the U.S. Midwest was closed because of a leak.

“It’s that optimism in the market,” said Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney. “The data out of China was quite supportive. The whole world is looking for a means to create confidence. As result of that being created you’ll see more demand, or an expectation for more consumption of oil.” The October contract rose as much as 47 cents, or 0.6 percent, to $76.92 a barrel in electronic trading on the New York Mercantile Exchange, and was at $76.80 at 9:32 a.m. Sydney time. It gained $2.20, or 3 percent, to $76.45 on Sept. 10. Prices have fallen 3.2 percent this year.

Enbridge Energy Partners LP on Sept. 9 shut its Line 6A, part of a system that can transport 670,000 barrels a day from Canada. The country is the largest source of U.S. imports, sending 2.2 million barrels a day in June, according to the Energy Department. Brent crude oil for October settlement added as much as 31 cents, or 0.4 percent, to $78.47 a barrel on the London-based ICE Futures Europe exchange. The contract rose 69 cents, or 0.9 percent, to $78.16 on Sept. 10.

Bloomberg reporter Ben Sharples can be reached at bsharples@bloomberg.net


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