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Oil gains on demand rise speculation

16 November 2009 07:14 (UTC +04:00)

Bakuâ€“ APA-Economics. 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, Bloomberg reported.
Oil also rose as the dollar fell, increasing the investments in commodities and pushing up the price producers must seek to maintain purchasing power. A report today in the U.S., the worldâ€™s largest energy 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.
Crude oil for December delivery rose as much as $1.04, or 1.4 percent, to $77.39 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $77.29 at 2:06 p.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 jobless claims in the worldâ€™s largest economy increased, fuel stockpiles rose and the nationâ€™s refiners reduced operating rates to a 13-month low.
Crude has gained 73 percent this year and reached a 12- month high of $82 on Oct. 21. The euro has gained about 6.4 percent over the same period, and climbed to as much as $1.4967 today from $1.4903 late in New York last week.
Oilâ€™s â€œpre-emptiveâ€ rally has been affirmed by the return to growth in Europe and recent data from the U.S. and China, Hassall said. The U.S. recovery appears â€œunevenâ€ and more consistent data may be needed for oil to push higher.
OPEC, producer of more than 40 percent of the worldâ€™s crude oil, will meet on Dec. 22 in Luanda, Angola, to discuss output targets after agreeing to leave them unchanged at the last three meetings. The groupâ€™s compliance with the production cuts slipped to 60 percent in October from 62 percent in September, it said in a report on Nov. 11.
Production from the 11 members excluding Iraq that are bound by the targets rose by 50,000 barrels a day to 26.52 million barrels a day from September.
Brent crude for January settlement rose 84 cents, or 1.1 percent, to $77.15 a barrel on the London-based ICE Futures Europe exchange. It dropped 46 cents, or 0.6 percent, to $76.31 a barrel on Nov. 13. The December contract expired the same day, falling 47 cents, or 0.6 percent, to $75.55.