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Oil hovers over $70 first time in 10 days

16 December 2009 07:31 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil traded near $71 a barrel in New York after rising for the first time in 10 days on a report that U.S. factories churned out more goods in November than anticipated, a signal fuel demand may increase, Bloomberg reported.
Oil snapped its longest decline since 2001 yesterday as the Federal Reserve said output at factories, mines and utilities climbed 0.8 percent in November, the fourth increase in five months. Germanyâ€™s Ifo economic institute raised its 2010 outlook for growth in Europeâ€™s biggest economy.
Crude oil for January delivery traded at $70.64 a barrel, down 5 cents, in electronic trading on the New York Mercantile Exchange at 1:34 p.m. Singapore time. Yesterday, the contract rose $1.18, or 1.7 percent, to settle at $70.69 a barrel. Futures have climbed 58 percent this year.
Gains were pared after the American Petroleum Institute reported yesterday crude oil inventories rose 924,000 barrels last week to 332.5 million. Gasoline stocks climbed 2.07 million barrels to 217 million and distillate fuels, a category that includes heating oil and diesel, fell 3.16 million barrels to 165.8 million, according to the API.
Brent crude oil for January settlement was at $72.08 a barrel on the London-based ICE Futures Europe exchange, up 3 cents, at 1:30 p.m. Singapore time. Yesterday, the contract rose 16 cents to settle at $72.05 a barrel.