Crude oil climbed above $79 a barrel in New York for the first time in a year, rising for an eighth day on speculation demand will increase as the global economy recovers from recession. A report today may show confidence among home builders in the U.S., the world’s largest oil consumer, is at its highest in 17 months, according to economists surveyed by Bloomberg News. There is no shortage of oil and OPEC won’t increase output to quell price gains driven by speculators, Secretary General Abdalla El-Badri told the Wall Street Journal on Oct. 16.
“The economic numbers are looking better and a lot of that seems to have already been priced in,” said Ben Westmore, energy and minerals economist at National Australia Bank Ltd. in Melbourne. “There is still a big question mark over how much of that, especially in the U.S. and China, is being driven by the stimulus packages.”
Crude oil for November delivery rose as much as 52 cents, or 0.7 percent, to $79.05 a barrel in after hours electronic trading on the New York Mercantile Exchange, the highest since Oct. 15 2008.....Read the entire article.
