Crude rises on supply concerns, US economic data
Monday, 24 December 2007
NEW YORK, Dec 23 (AFP): Oil prices surged Friday before the Christmas and New Year holidays amid lingering concerns about energy supplies during the northern hemisphere winter, analysts said.
The market also was underpinned by generally strong US economic data suggesting demand may not weaken as much as anticipated.
New York's main contract, light sweet crude for February, closed up a strong 2.25 dollars at 93.31 dollars per barrel.
In London, Brent North Sea crude for February delivery settled up 1.58 dollars at 92.46 dollars per barrel.
"Oil futures were trading higher in thin volumes ahead of the holiday period," said Andrey Kryuchenkov, an analyst at the Sucden brokerage in London.
"In the absence of any significant fundamental news, trading is likely to remain choppy, amid light volume, with no real direction, as most market participants are preparing to go on holidays."
Analysts predicted that the market would trade within tight ranges for the remainder of 2007 -- a year that has witnessed record price levels close to 100 dollars a barrel.
In the US, a report showed consumers shook off a slump in housing and tight credit and boosted spending by a stronger-than- anticipated 1.1 percent in November.
The Commerce Department report also showed that personal incomes rose 0.4 percent, a notch weaker than forecast.
This week, the market was supported by data showing that US crude stocks had fallen below their five-year average for the first time in more than three years.
Prices had bounced higher Wednesday after the US Department of Energy said US crude stockpiles tumbled by a more- than-expected 7.6 million barrels to 296.9 million barrels in the week that ended December 14.
The market also was underpinned by generally strong US economic data suggesting demand may not weaken as much as anticipated.
New York's main contract, light sweet crude for February, closed up a strong 2.25 dollars at 93.31 dollars per barrel.
In London, Brent North Sea crude for February delivery settled up 1.58 dollars at 92.46 dollars per barrel.
"Oil futures were trading higher in thin volumes ahead of the holiday period," said Andrey Kryuchenkov, an analyst at the Sucden brokerage in London.
"In the absence of any significant fundamental news, trading is likely to remain choppy, amid light volume, with no real direction, as most market participants are preparing to go on holidays."
Analysts predicted that the market would trade within tight ranges for the remainder of 2007 -- a year that has witnessed record price levels close to 100 dollars a barrel.
In the US, a report showed consumers shook off a slump in housing and tight credit and boosted spending by a stronger-than- anticipated 1.1 percent in November.
The Commerce Department report also showed that personal incomes rose 0.4 percent, a notch weaker than forecast.
This week, the market was supported by data showing that US crude stocks had fallen below their five-year average for the first time in more than three years.
Prices had bounced higher Wednesday after the US Department of Energy said US crude stockpiles tumbled by a more- than-expected 7.6 million barrels to 296.9 million barrels in the week that ended December 14.