Sunday, November 14, 2010

Crude Oil Rises for First Time in Three Days on Optimism U.S. Demand May Gain

Crude oil climbed for the first time in three days after the Japanese economy grew faster than expected, stoking speculation Asia’s fuel demand will increase. Futures retraced some of last week’s 2.3 percent decline after Japan’s gross domestic product rose an annualized 3.9 percent in the third quarter, the Cabinet Office said in Tokyo today. The median forecast of 21 economists surveyed by Bloomberg News was for a 2.5 percent increase.

“It gives further evidence of that Asian recovery,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “You’ve seen the recovery in China and the positive spill over affects for those economies in the Asian region. Up until now, you haven’t really seen it as much in Japan.”

December crude futures added as much as 50 cents, or 0.6 percent, to $85.38 in electronic trading on the New York Mercantile Exchange, and was at $85.33 at 11:53 a.m. Sydney time. Crude fell $2.93 to $84.88 on Nov. 12, the lowest since Nov. 3. Prices are up 7.6 percent this year.
Chinese oil processing rose to a record last month after refiners increased production to ease a domestic fuel shortage. Plants refined 37 million metric tons, or about 8.8 million barrels a day, in October, up 12 percent from a year earlier, China Mainland Marketing Research Co. said Nov. 11......Read the entire article.

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