Oil Rises First Time in Five Days as Europe Leaders Agree on Fund Package

Crude oil surged more than 4.5 percent in New York, its biggest jump in seven months, on speculation an emergency fund by European policy makers will contain sovereign debt risks and maintain economic growth. Oil climbed from a 12 week low on May 7 after the European Union and the International Monetary Fund agreed to a lending mechanism of about 720 billion euros ($928 billion). Prices may return to $80 to $85 a barrel once the debt crisis is resolved, Algerian Energy Minister Chakib Khelil said today.

“Europe has clearly swung the pendulum back to optimism,” said Michael Fitzpatrick, vice president of energy at MF Global in New York. Crude oil for June delivery rose $1.64, or 2.2 percent, to $76.75 a barrel at 9:03 a.m. on the New York Mercantile Exchange. Futures rose as much as $3.40 to $78.51, the biggest gain since Sept. 30. Crude has increased 31 percent in the past year.

U.S. stock index futures rallied, with the contract on the Standard & Poor’s 500 Index touching its daily limit. June contracts on the S&P 500 Index increased 4.1 percent to 1,152.10 at 9:05 a.m. in New York after earlier reaching the limit of 1,162. The euro is heading for its biggest two day gain in more than a year, rising to $1.2913 from $1.2755 May 7 and restoring the appeal of dollar price assets as an alternative investment.

Reporter Margot Habiby can be reached at mhabiby@bloomberg.net.


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Crude Oil Climbs From a Three Week Low on Forecast of U.S. Stockpile Drop

Oil rose from a three week low on speculation a report tomorrow will show crude stockpiles in the U.S., the world’s biggest energy consumer, declined for a second week and as rising equity prices buoyed investor sentiment. Inventories in the U.S. probably fell 600,000 barrels last week, a Bloomberg News survey showed. U.S. stocks yesterday reversed losses as Citigroup Inc. beat profit estimates and Bloomberg reported that the Securities and Exchange Commission was divided in its decision to sue Goldman Sachs Group Inc. Asian stocks rose today, led by finance companies.

“The market ran a little hard on the downside,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. “Oil has come back quite a bit” and people are reconsidering some of the impact they were expecting from the action against Goldman, he said. Crude oil for May delivery rose as much as 93 cents, or 1.1 percent, to $82.38 a barrel on the New York Mercantile Exchange. It was at $81.96 at 12:13 p.m. Singapore time. Yesterday, the contract dropped 2.2 percent to $81.45, the lowest settlement since March 26. The more actively traded June contract climbed 32 cents to $83.45. Futures have gained 3.3 percent this year.

Oil tumbled yesterday after the SEC sued Goldman, prompting investors to step away from risky assets such as commodities. Air traffic disruptions caused by a volcanic eruption under Iceland’s Eyjafjallajökull glacier cut jet fuel demand in Europe by about two thirds, according to Deutsche Bank.

Crude Stockpiles
Oil has fallen in eight of the nine sessions since April 6, when the market reached an 18 month high of $87.06. Prices rose on April 14 after the Energy Department reported an unexpected 2.2 million barrel decline in U.S. crude oil inventories. It was the first drawdown in 11 weeks. Tomorrow’s report will probably show a second decline as refiners increased operating rates for a fifth week to meet summer gasoline demand, according to the Bloomberg survey. Stockpiles of the motor fuel probably rose 140,000 barrels, based on the median estimate from 11 analysts polled.

U.S. oil stockpiles remain high and many commodities have “moved ahead of their fundamentals,” said Moore at Commonwealth Bank of Australia. Brent crude oil for June settlement climbed as much as 57 cents, or 0.7 percent, to $84.80 a barrel on the London based ICE Futures Europe exchange. It was at $84.64 at 12:17 p.m. Singapore time. Yesterday, the contract settled at $84.23 after losing 2.1 percent, the most since Feb. 25.

Reporters Gavin Evans and Yee Kai Pin can be reached at gavinevans@bloomberg.net and kyee13@bloomberg.net





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Crude Oil Gains the Most in Four Weeks in New York as the Dollar Weakens

Crude oil rose the most in four weeks as the dollar fell against the euro, buoying demand for most commodities as an alternative investment, and as OPEC ministers indicated they would refrain from increasing output. Oil gained as much as 2.7 percent as the dollar weakened against the euro after Standard & Poor’s Ratings Services affirmed its sovereign credit ratings on Greece. Saudi Arabia’s oil minister said yesterday oil prices are in the right range. The kingdom is OPEC’s biggest producer.

“It’s a pretty good move down for the dollar, and that’s definitely getting things perked up,” said John Kilduff, a partner at Round Earth Capital, a New York based hedge fund that focuses on food and energy commodities. “The OPEC decision is baked in the cake.” Crude oil for April delivery rose $1.81, or 2.3 percent, to $81.61 a barrel at 10:59 a.m. on the New York Mercantile Exchange. Earlier, oil touched $81.99 a barrel in its biggest increase since Feb. 16. Oil has advanced 72 percent in the past year.

Most major currencies, including the dollar, weakened against the euro after European finance ministers worked out a strategy for emergency loans to Greece should the nation’s plan to reduce the region’s biggest budget deficit fall. S&P affirmed its BBB+ long term and A-2 short term credit ratings on Greece. The dollar weakened 0.6 percent against the euro to $1.3762 at 11:02 a.m. in New York from $1.3677 yesterday. Some investors buy commodities like oil, gold and copper as an alternative investment to the dollar.

The Reuters/Jefferies CRB Index of 19 commodities advanced for the first time in seven days, gaining 0.7 percent to 272.74. Twelve of the commodities increased, led by heating oil, crude and gasoline.....Read the entire article.

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Crude Oil Rises, Topping $81, After U.S. Loses Fewer Jobs Than Predicted

Crude oil surged and gasoline rose to a 17-month high after U.S. employment declined less than forecast in February, bolstering optimism that fuel demand will climb in the world’s biggest energy consuming country.

Oil rose as much as 2.3 percent after the Labor Department reported that payrolls dropped 36,000 last month. The total was forecast to fall by 68,000, according to economists surveyed by Bloomberg News. U.S. fuel use, averaged over the past four weeks, was 19.3 million barrels, up 3 percent from a year earlier, an Energy Department report on March 3 showed.

“The employment numbers were quite good relative to expectations, so I’m surprised the market isn’t responding more,” said Michael Fitzpatrick, vice president of energy at MF Global in New York.

Crude oil for April delivery rose $1.26, or 1.6 percent, to $81.47 a barrel at 12:09 p.m. on the New York Mercantile Exchange. Futures reached $82.07, the highest level since Jan. 12. The contract is up 2.3 percent this week.

Gasoline for April delivery increased 3.13 cents, or 1.4 percent, to $2.265 a gallon in New York. The fuel touched $2.2831, the highest price since Oct. 3, 2008.

The Standard & Poor’s 500 Index gained 10.83, or 1 percent, to 1,133.80. The Dow Jones Industrial Average rose 81.25 points to 10,525.39.

“We had a nice spike up on the jobless report,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “Whenever we get above $80 the bids seem to dry up. I will have to see us close above $80 for a few more days before I’m convinced we’re going to test $84.96.”

The April oil contract surged to $84.96 a barrel on Jan. 11, the highest level since October 2008.....Read the entire article.


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Crude Oil Drops More Than $2 as U.S. Consumer Confidence Falls

Crude oil fell more than $2 a barrel as confidence among U.S. consumers dropped in February to the lowest level in 10 months, a signal that energy demand may be slow to recover.

Oil for April delivery decreased as much as 2.6 percent from a five week high as the Conference Board’s confidence index weakened to 46, lower than anticipated, from a revised 56.5 in January. A report earlier today showed German business confidence declined for the first time in 11 months in February.

“This is a huge drop from the Conference Board,” said Phil Flynn, vice president of research at PFGBest in Chicago. “If consumers are going back into the hole, the likelihood of gasoline demand being strong is pretty weak.”

Crude oil for April delivery declined $1.94, or 2.4 percent, to $78.37 a barrel at 10:15 a.m. on the New York Mercantile Exchange. Earlier, it touched $78.22 a barrel.
Yesterday, the March contract expired at $80.16, capping a five day rally of 8.1 percent.

The Ifo institute in Munich reported earlier today that its business climate index, based on a survey of 7,000 executives, fell to 95.2 from 95.8 in January. Economists expected a gain to 96.1, according to the median of 37 forecasts in a Bloomberg News survey.....Read the entire article.


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Oil Falls First Day in Five on Stronger Dollar, Forecast for Supply Gain

Crude oil fell in New York for the first day in five as the dollar extended gains against the euro and analysts forecast an increase in U.S. stockpiles, signaling weak demand in the biggest energy consuming nation. Oil slipped below $75 a barrel after the dollar strengthened on speculation the European Union will fail to take sufficient measures to help Greece tackle its fiscal deficit, damping the investment appeal of commodities. A weekly Energy Department report today may show crude and gasoline supplies increased last week, according to a Bloomberg News survey.

“The market is hanging on its edge, waiting for the Department of Energy numbers,” said Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney. “Prices could still come under pressure because there is still that inventory rise overhang in the market.” Crude oil for March delivery fell as much as 53 cents, or 0.7 percent, to $74.75 a barrel in electronic trading on the New York Mercantile Exchange. It was at $74.82 at 12:52 p.m. Singapore time. Yesterday, the contract rose 1 percent to settle at $75.28. Futures have gained 5.1 percent this week, poised for the first weekly gain in five.

The 16 nation euro dropped to near a one week low against the dollar after the European Union stopped short of offering concrete steps to help Greece. The U.S. currency traded at $1.3665 per euro at 12:28 p.m. in Singapore from $1.3693 yesterday in New York.....Read the entire article.

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Crude Oil Rises as U.S. Targets Iranian Guard With Sanctions

Oil rose for a third day as the U.S. froze assets of four companies connected with Iran, heightening tensions with OPEC’s second largest crude producer. Futures increased as much as 1.7 percent as the Treasury Department announced the restrictions on the companies and one individual with links to Iran’s Islamic Revolutionary Guard Corps. The U.S. has accused the Guard of developing weapons of mass destruction and supporting terrorism.

“It’s an escalation, but we’ve been escalating in baby steps for a long time,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “What the Iranians are more worried about is the degree of unrest internally, which is not affected by these sanctions.” Crude oil for March delivery rose $1.05, or 1.4 percent, to $74.80 a barrel at 2:06 p.m. on New York Mercantile Exchange. Futures have lost 5.8 percent this year.

The U.S. has been trying to rally reluctant countries, especially China, to sanction Iran as the government in Tehran resists pressure to scale back its uranium enrichment work. Secretary of State Hillary Clinton has signaled the U.S. wants to target the Revolutionary Guard, an elite military branch with extensive business interests. Iran already is subject to United Nations Security Council restrictions, including a 2007 resolution freezing assets and banning travel for some Revolutionary Guard-affiliated companies and officials. The Iranian government maintains that its nuclear development work is a legitimate effort to build a civilian power industry.....


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Oil Rises for Second Day on Demand Outlook, Supply Constraints

Crude oil rose for a second day on speculation increasing demand and constraints on supply will reduce global stockpiles and support prices. Oil imports by China, the world’s second largest consumer, climbed 24 percent in December to reach a record annual total of 203.8 million metric tons, according to a customs report yesterday. Chevron Corp. said the Makaraba-Utonana pipeline it operates in southern Nigeria’s Delta state was breached on Jan. 8, shutting-in 20,000 barrels a day of crude.

“Asia has obviously performed well throughout this recession,” said Toby Hassall, commodity analyst at CWA Global Markets Pty in Sydney. “Beyond the short term, the global economy, and the U.S. in particular, the largest consumer of oil, is in the early stages of a recovery, which suggests that demand is on the mend.” Crude oil for February delivery rose as much as 71 cents, or 0.9 percent, to $83.46 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $83.43 at 8:07 a.m. Singapore time.

The contract rose 9 cents to $82.75 on Jan. 8 after the dollar tumbled on a report showing employment in the U.S. unexpectedly fell in December. Futures climbed 4.3 percent last week and gained in 11 of the past 12 sessions as freezing temperatures in Europe and North America boosted heating demand.....Read the entire article.

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Crude Oil Fluctuates as Forecasts Show Warming U.S. Weather

Crude oil fluctuated, after rising for eight days in New York, on forecasts that temperatures in the northern U.S. will climb next week. The weather in the U.S. Northeast, the area responsible for about four-fifths of the country’s heating oil use, will return to normal between Jan. 12 and Jan. 18, according to the Climate Prediction Center of the National Weather Service. Oil surged yesterday on the cold, manufacturing growth in China and the U.S., rising equities and a decline in the dollar. “It looks like the worst of the cold will hit us between Jan. 7 and Jan. 10 before temperatures moderate,” said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. “Traders are actually paying more attention to the S&P and the dollar, neither of which are doing anything. We have to look at these markets for direction.”

Crude oil for February delivery fell 4 cents to $81.47 a barrel at 10:49 a.m. on the New York Mercantile Exchange. Futures reached $81.99 today, the highest intraday price since Oct. 21, when they touched $82. The Standard & Poor’s 500 Index was little changed at 1,133.23. The dollar traded at $1.4423 per euro, down 0.1 percent from yesterday. A weak U.S. currency bolsters the appeal of commodities to investors looking for alternative investments. “It’s a foregone conclusion that we will soon break through last year’s high of $82,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. “We’re getting some of the coldest weather in years and that’s bound to increase demand”.....Read the entire article.

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Oil To Lift Gulf States In 2010, Debt Remains Concern

Arab Gulf states may get a boost from higher oil prices in 2010 but the region's real estate and banking sectors still face head winds. "We are going to see an improvement in macro economic conditions, mainly due to higher oil prices, which will trickle down to corporate activity," said Faisal Hassan, head of research at Global Investment House. The United Arab Emirates, Saudi Arabia and four other Arab Gulf states depend heavily on revenue from oil exports, which still provide about 60% of the regions foreign currency earnings.

Oil prices have more than doubled from lows of about $35 a barrel at the beginning of 2009 as fear of global economic Armageddon has given way to optimism about a recovery led from Asia. New York Mercantile Exchange crude futures averaged just above $62 a barrel in 2009, according to Zawya Dow Jones calculations. Saudi Arabia, the Middle East's economic powerhouse and its biggest oil producer, is expected to see real gross domestic product grow by 3% in 2010, after successfully averting contraction this year, according to Kuwait's Global. The kingdom is expected to record marginal real GDP growth of 0.15% in 2009.....Read the entire article.

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Oil Fluctuates as Heating Oil Climbs, U.S. Dollar Gains Against Euro

Crude oil fluctuated as heating oil rose to a two-month high on forecasts for cold weather in the U.S. and the dollar strengthened against the euro, reducing the appeal of commodities as an alternative investment. Oil touched a five week high earlier today on the outlook for below normal temperatures for much of the nation next week. Reports signaling that the U.S. economy may be rebounding from the worst recession since World War II bolstered the dollar, pressuring commodities.

“Another arctic blast is supportive,” said Phil Flynn, vice president of research at PFGBest in Chicago. “Still, we’re up a little bit on the dollar, and that’s a reason for people to get out of the upside on crude.” Crude oil for February delivery rose 2 cents to $78.79 a barrel at 12:39 p.m. on the New York Mercantile Exchange. Earlier, it touched $79.39, the highest level since Nov. 23.

Heating demand is expected to be above normal in the Northeast, Southeast and central U.S. for most of the week through Jan. 5, David Salmon, a forecaster at Weather Derivatives in Belton, Missouri, said in a report today.....Read the entire article.

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Oil Trades Above $74 on Speculation Supplies Dropped Last Week

Oil held steady above $74 a barrel in New York before a U.S. Energy Department report likely to show crude stockpiles fell last week as temperatures dropped. The report today is expected to show oil inventories in the U.S., the world’s biggest energy consumer, shrank by 1.6 million barrels in the week ended Dec. 18, according to the median estimate of 16 analysts polled by Bloomberg News. Data from the industry funded American Petroleum Institute yesterday showed commercially held U.S. inventories fell by 3.71 million barrels.

“Due to cold weather, we are seeing stock draws in crude and that is the supporting factor these days,” said Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich. “It brings the inventory levels nearer to the five year average.” Crude oil for February delivery rose as much as 47 cents, or 0.6 percent, to $74.87 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $74.66 as of 10:36 a.m. London time. Futures closed yesterday at $74.40, the highest settlement since Dec. 4. There will be no trading on Dec. 25 for Christmas and on Jan. 1 for New Year’s Day.....Read the entire article.


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Oil Falls as U.S. Growth Revised Lower, OPEC Maintains Quotas

Crude oil fell after the U.S. economy expanded at a slower pace than anticipated in the third quarter and OPEC agreed to maintain production targets. Oil slipped after the Commerce Department said that the gross domestic product grew 2.2 percent from July through September, down from a 2.8 percent gain previously reported. The Organization of Petroleum Exporting Countries will hold quotas at 24.845 million barrels a day. “This was a significant revision,” said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant. “This should weigh on prices.”

Crude oil for February delivery dropped 47 cents, or 0.6 percent, to $73.25 a barrel at 10:14 a.m. on the New York Mercantile Exchange. Prices are up 64 percent this year. This was the fourth time this year that OPEC ministers met without revising production figures. Today’s meeting was held in Luanda, Angola. Rising prices have encouraged some OPEC members to renege on their pledge in 2008 to reduce output by 4.2 million barrels a day. Members complied with 58 percent of cuts in November, down from 60 percent the previous month, according to International Energy Agency estimates.....Read the entire article.


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Iraq Accuses Iran of Violating Border, Demands Withdrawal From Territory

Iraq’s National Security Council said today that Iran violated their shared border and Iraq’s “territorial integrity” and called on the Islamic republic to withdraw its forces from the region. Iraq summoned the Iranian ambassador in Baghdad and has begun “diplomatic steps” to resolve the situation, Iraqi government spokesman Ali Al Dabbagh said in a statement after a meeting of the security council.

Iranian forces entered Iraq at dawn yesterday and occupied an oil well in the East Maysan oil field, Zafer Nazmi, a border guard general, said earlier today. The Iranian forces positioned tanks around the well in the al-Fakah region, 450 kilometers (280 miles) south of Baghdad. The two neighbors have disputed the border of southeast Iraq for decades.

“The council stressed that the incursion is a violation of Iraq’s border and territorial integrity and called on Iran to withdraw from well 4 and lower the Iranian flag from the well tower immediately,” according to the statement. Crude oil for January delivery rose 71 cents, or 1 percent, to settle at $73.36 a barrel today on the New York Mercantile Exchange. It rose as much as 2.8 percent in intraday trading on news of the incursion.....Read the entire article.


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Crude Hovers Near $70 Despite Surprise Drawdown

Despite a surprise drawdown in domestic crude stocks reported today, U.S. crude oil futures fell once more on the New York Mercantile Exchange Wednesday, pressured by oil traders' increasingly bearish outlook regarding the market's underlying fundamentals, as well as concerns about the global economy's recovery. Recording a negative movement on the NYMEX for the sixth consecutive session, the price of light, sweet crude oil closed nearly $2 less than its previous settlement to $70.67 a barrel. Additionally, natural gas spot prices at the Henry Hub reversed to just under the $5-threshold to settle at $4.898 per thousand cubic feet.

"We have broken out to the downside of this $75-$80 range in the crude oil market that had been holding since the middle of October," noted Bill O'Grady, the chief markets strategist at St.Louis based Confluence Investment Management LLC. "We fell out of it yesterday and accelerated today on government data that wasn't really all that bearish, you had a bullish crude number, but the product numbers were not very strong." Interestingly, the dollar's three day advance collapsed against the euro on Wednesday, which did little to prop up energy prices. Typically, a weaker greenback loses its safe haven appeal, spurring traders toward cheaper dollar denominated commodities.....Read the entire article.


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Crude Oil Rises for First Time in Five Days on Dollar Decline

Crude oil rose for the first time in five days as the dollar weakened and some investors took the view a decline below $75 made it an attractive investment. Oil snapped four days of losses as the dollar fell against the euro, increasing the appeal of commodities as an alternative investment. The contract has traded between $75 and $81 for almost eight weeks and yesterday settled below $75 for the first time since Oct. 13.

“Markets had for a while started to get used to the $75 to $80 a barrel range for oil, and the move to the lower part of that range is probably attracting some buying,” David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney, said by telephone. “The U.S. dollar eased back and that’s been another factor why the oil price has lifted.”

Crude oil for January delivery gained as much as 46 cents, or 0.6 percent, to $74.39 a barrel in electronic trading on the New York Mercantile Exchange. It was at $74.12 a barrel at 11:58 a.m. Singapore time. Yesterday, the contract fell $1.54, or 2 percent, to $73.93. Prices have climbed 67 percent this year.The dollar traded at $1.4841 per euro at 12:05 p.m. in Singapore, from $1.4827 yesterday.

Oil dropped yesterday as Federal Reserve Chairman Ben S. Bernanke said the U.S. economy will face a weak labor market and tight credit, signaling fuel demand will be slow to recover. Bernanke’s comments “gave markets a bit of a reality check and made people reassess how they thought the recovery is going to pan out,” Ben Westmore, an energy and minerals economist at National Australia Bank Ltd. in Melbourne, said by phone. “As a result oil got sold off”.....Read the entire article.


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Bloomberg Analyst: Oil to Extend Drop, Test Channel Below $74

Crude oil, declining since touching a one-year high of $82 a barrel Oct. 21, is poised to test the bottom of a downtrend channel below $74, according to an analysis of price charts by Societe Generale SA. Oil, trading lower today for the fourth day in five, could extend its drop as traders pull out in the absence of profit opportunities, according to Stephanie Aymes, a London based commodity technical analyst at France’s second largest bank by market value. “We are in a range, a descending channel,” Aymes said in an e-mail. “It looks like the one in August, but that was deeper. This range is very long and the daily indicators are breaking supports.”

Crude oil has pared its gains for this year from as high as 84 percent to 70 percent amid concern weaker growth in the U.S., the world’s largest energy consumer, may slow the recovery in demand. Futures for January delivery on the New York Mercantile Exchange was at $76.01 a barrel in electronic trading, down 1 cent, at 11:57 a.m. Singapore time. Prices, which fell yesterday after the Commerce Department said the U.S. economy expanded less than estimated in the third quarter, are approaching a technical support area and may soon test its resilience, Aymes said.....Read the entire article.

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Oil Falls as Economic Growth Revised Lower, Supplies May Gain

Crude oil fell after a report showed that the U.S. economy grew at a slower level than previously estimated, and on forecasts that supplies gained. Oil retreated after the Commerce Department said that the economy expanded at a 2.8 percent annual rate in the third quarter, down from a 3.5 percent increase initially stated. The U.S. Energy Department will probably report tomorrow that crude oil supplies grew by 1.5 million barrels in the week ended Nov. 20, according to a Bloomberg News survey. “As long as there are tepid headlines about the economy, oil is going to be under pressure,” said Michael Fitzpatrick, vice president of energy with MF Global in New York. “We seem to be attracted to the lower end of the recent range and will probably test it before long.”

Crude oil for January delivery declined $1.48, or 1.9 percent, to $76.08 a barrel at 10:59 a.m. on the New York Mercantile Exchange. Futures have gained 71 percent this year. Transactions may be lighter than normal because of this week’s U.S. Thanksgiving holiday. There will be no trading on Nov. 26 and floor trading will end early on Nov. 27. “I’m not getting excited about anything I see this week as far as price action is concerned,” said Stephen Schork, president of consultant Schork Group Inc. in Villanova, Pennsylvania. “Volume and liquidity are down, so volatility is going to be through the roof”.....Read the entire article.

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Oil Rises the Most in Six Weeks on Weaker Dollar, Equity Gain

Crude oil rose the most in six weeks as the dollar weakened and the Standard & Poor’s 500 Index strengthened to a 13 month high, bolstering confidence that the global economy and energy demand are recovering. Oil gained 3.3 percent as the U.S. currency’s drop encouraged the purchase of alternative investments. Stocks climbed after U.S. retail sales increased more than forecast and Asian government leaders pledged to maintain economic stimulus spending. The gross domestic product of Japan, the third biggest oil consumer, grew at a 4.8 percent pace in the third quarter.

“The dollar is weaker and stocks are up, both of which are helping send prices higher,” said Ric Navy, a broker at BNP Paribas SA in New York. “The funds are still coming in, and that should push the market higher.” Crude oil for December delivery rose $2.55 to settle at $78.90 a barrel on the New York Mercantile Exchange. It was the biggest gain since Sept. 30. Oil has traded between $74.79 and $82 since Oct. 15. Futures are up 77 percent this year.....Read the entire article.

Oil Rises From One Month Low on Speculation Demand to Increase

Crude oil rose from a one month low on speculation demand will increase as the global economy recovers from its worst recession since World War II. A report today in the U.S., the world’s largest oil user, will probably show New York manufacturing expanded for a fourth month in October, based on the median estimate in a Bloomberg survey of economists. Oil also rose as the dollar declined, increasing the investment appeal of commodities and pushing up the price producers must seek to maintain purchasing power.

Oil “has been a trade based on the recovery story and that hasn’t changed,” said Toby Hassall, a research analyst with CWA Global Markets in Sydney. “The weakness in the U.S. dollar should remain a pretty supportive factor.” Crude oil for December delivery rose as much as 72 cents, or 0.9 percent, to $77.07 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $77 at 8:29 a.m. in Singapore. The contract fell 59 cents to $76.35 a barrel on Nov. 13, the lowest settlement since Oct. 14, after an unexpected decline in U.S. consumer confidence. Prices fell 1.4 percent last week as U.S. jobless claims increased, fuel stockpiles rose and the nation’s refiners reduced operating rates to a 13 month low.....Read the entire article.