Oil surges to highest level in 17 months
Tuesday, 6 April 2010
NEW YORK, April 5 (Bloomberg): Crude oil surged to the highest level in 17 months after March data showing employers in the US, the world's biggest oil consumer, added the most jobs in three years, bolstering optimism that fuel demand will climb.
Oil increased as much as 1.2 per cent after the Labor Department reported that payrolls rose by 162,000 last month. Oil also climbed before a report today that may show service industries in the US expanded in March at the fastest pace since 2007, based on a Bloomberg survey of economists.
"Traders were waiting for the March payroll report to come out to see if the trend in the US is still positive," said Thina Saltvedt, a commodities analyst at Nordea Bank AB in Oslo. "It has raised hopes of the need for energy in the market."
Crude oil for May delivery rose as much as $1.02, or 1.2 per cent, to $85.89 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since Oct. 9, 2008. The contract was at $85.42 at 10:19 a.m. London time.
Futures increased $1.11, or 1.3 per cent, to settle at $84.87 on April 1. Prices climbed after reports showed Chinese, European and US manufacturing expanded, while pessimism decreased among Japan's largest industrial companies.
Oil trading resumed today after the exchange closed April 2 to mark the Good Friday holiday. The Labor Department report published that day showed US payrolls were buoyed by 48,000 temporary workers hired by the government to conduct the census.
Oil traded within a range of $68 to $84 a barrel in the six months ended March 30. Prices climbed the past two months as improved investor confidence lifted world equity markets and US refining climbed from a 16-month low.
Still, US crude oil stockpiles have posted nine weekly increases and held 354.2 million barrels in the week ended March 26, 6.5 per cent higher than the five-year average for the period, the Energy Department said last week.
Oil increased as much as 1.2 per cent after the Labor Department reported that payrolls rose by 162,000 last month. Oil also climbed before a report today that may show service industries in the US expanded in March at the fastest pace since 2007, based on a Bloomberg survey of economists.
"Traders were waiting for the March payroll report to come out to see if the trend in the US is still positive," said Thina Saltvedt, a commodities analyst at Nordea Bank AB in Oslo. "It has raised hopes of the need for energy in the market."
Crude oil for May delivery rose as much as $1.02, or 1.2 per cent, to $85.89 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since Oct. 9, 2008. The contract was at $85.42 at 10:19 a.m. London time.
Futures increased $1.11, or 1.3 per cent, to settle at $84.87 on April 1. Prices climbed after reports showed Chinese, European and US manufacturing expanded, while pessimism decreased among Japan's largest industrial companies.
Oil trading resumed today after the exchange closed April 2 to mark the Good Friday holiday. The Labor Department report published that day showed US payrolls were buoyed by 48,000 temporary workers hired by the government to conduct the census.
Oil traded within a range of $68 to $84 a barrel in the six months ended March 30. Prices climbed the past two months as improved investor confidence lifted world equity markets and US refining climbed from a 16-month low.
Still, US crude oil stockpiles have posted nine weekly increases and held 354.2 million barrels in the week ended March 26, 6.5 per cent higher than the five-year average for the period, the Energy Department said last week.