Crude oil rose to a 15 month high on speculation fuel demand will increase as energy and economic data indicate the global recovery may be sustained amid freezing temperatures in the Northern Hemisphere. Oil advanced a second day after crude imports by China, the second largest energy consumer, climbed in December to reach a record annual total of 203.8 million metric tons, a customs report showed yesterday. U.S. consumers probably took advantage of holiday discounts in December while manufacturers churned out more goods, economists said before reports out this week.
“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 92 cents, or 1.1 percent, to $83.67 a barrel in electronic trading on the New York Mercantile Exchange. That’s the highest since Oct. 14, 2008. It was at $83.46 a barrel at 12:50 p.m. Singapore time.
The contract gained 9 cents to $82.75 a barrel Jan. 8 after the dollar declined on a report showing employment in the U.S. unexpectedly fell in December. Futures have risen in 11 of the past 12 sessions as freezing temperatures in the U.S., Europe and Asia boosted heating fuel demand. More cold weather is forecast for China in the next two days.....Read the entire article.
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