Monday, November 15, 2010

Crude Oil Increases as Improving Economic Indicators Point to Higher Fuel Demand

Crude oil climbed on speculation improving economic indicators in the U.S. and Japan, the world’s first and third biggest crude oil consuming counties, may be a sign of  increased fuel demand. Oil rose as much as 1.1 percent after a report showed gross domestic product in Japan grew more than forecast in the third quarter as consumer spending increased. U.S. retail sales last month increased the most since March, a sign consumers may play a bigger role in the economic recovery.

“Some good economic numbers came out today, which gave us a boost,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “The market is moving on sentiment and perception. The headlines of any given day will decide the market’s move.” Crude oil for December delivery advanced 54 cents, or 0.6 percent, to $85.42 a barrel at 9:01 a.m. on the New York Mercantile Exchange. Futures rose as much as 89 cents to $85.77.

Brent crude oil for December settlement increased 67 cents, or 0.8 percent, to $87.01 on the ICE Futures Europe exchange in London. The December Brent contract expires today. More actively traded January oil rose 63 cents, or 0.7 percent, to $87.16. Japan’s economy increased an annualized 3.9 percent in the three months ended Sept. 30, the Cabinet Office said in Tokyo today. The median forecast of 21 economists surveyed by Bloomberg News was for a 2.5 percent gain.......Read the entire article.

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