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Oil starts to inch up on supply speculations

07 December 2009 07:55 (UTC +04:00)

Baku-APA-Economics. Crude oil bounced off a seven-week low on speculation above-average global fuel stockpiles will decline as demand picks up with the economy recovering from the worst recession since World War II, Bloomberg reported.

Oil traded near $76 a barrel after falling Dec. 4 as the dollar gained on a Labor Department report showing U.S. employers cut the fewest jobs in November since the recession began. Prices are â€œperfectâ€ and thereâ€™s no need for the Organization of Petroleum Exporting Countries to reduce global inventories, said Saudi Arabiaâ€™s Oil Minister Ali al-Naimi.

Crude oil for January delivery climbed as much as 63 cents, or 0.8 percent, to $76.10 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $75.63 a barrel at 12:19 p.m. Singapore time. Futures, which lost 54 percent in 2008, have gained 70 percent this year.

Oil dropped 1.3 percent Dec. 4 to $75.47 a barrel, the lowest settlement since Oct. 14, as the dollar rose, damping the investment appeal of commodities. U.S. payrolls slipped 11,000 in November and the jobless rate eased to 10 percent, the Labor Department said. The greenback was at $1.4891 per euro at 12:20 p.m. in Singapore, from $1.4858 in New York.

Brent crude oil for January settlement rose as much as 73 cents, or 0.9 percent, to $78.25 a barrel on the London-based ICE Futures Europe exchange. The contract was at $77.84 a barrel at 12:15 p.m. Singapore time. It fell 1.1 percent Dec. 4 to $77.52 a barrel, the lowest settlement in a week.
OPEC, which pumps about 40 percent of the worldâ€™s oil, cut output last year as the recession curtailed demand. The 12- member group is scheduled to discuss policy Dec. 22 in Luanda, Angola.
Energy ministers from four other OPEC states, also gathered in the Egyptian capital for a meeting of the Organization of Arab Petroleum Exporting Countries, said OPEC isnâ€™t likely to change its production quotas.