Crude oil climbed to the highest close in three weeks after the International Energy Agency increased its global consumption forecast for a third month.

Oil demand is likely to average 86.1 million barrels a day next year,
350,000 barrels a day more than the IEA estimated in September, a
monthly report showed. Prices fell earlier as the dollar rose after
Federal Reserve Chairman Ben S. Bernanke said monetary policy will be
tightened once the economy improves.

“The IEA 2010 demand numbers keep creeping higher,” said Christopher
Edmonds, the managing principal of FIG Partners Energy Research &
Capital Group in Atlanta. “The oil price is telling you that investors
believe that we have the made it to the trough and we will see the
economy and demand grow both domestically and globally.”

Crude oil for November delivery gained 8 cents to $71.77 a barrel at
2:45 p.m. on the New York Mercantile Exchange, the highest settlement
since Sept. 18. Prices climbed 2.6 percent this week. Futures rose as
much as 55 cents and dropped as $1.07 during today’s session.

The Paris-based agency said that an improved economic outlook from the
International Monetary Fund and higher-than- expected consumption in
Asia and the Americas were the reason for the revision to the demand
forecast.

“Your guess is as good as their’s,” said Stephen Schork, president of
consultant Schork Group Inc. in Villanova, Pennsylvania. “They change
their opinion from month to month depending on economic forecasts.
Long-lead economic forecasts are like long-lead weather forecasts, they
are something to make astrology look respectable.”

Demand Revisions

IEA, which advises 28 nations on energy policy, also raised its
estimate for consumption this year by 200,000 barrels a day to 84.6
million. The gain leaves 2009 demand 1.7 million barrels a day lower
than last year.

“We’re looking at a fairly robust rebound in demand next year,” David
Fyfe, head of the IEA’s oil industry and markets division, said by
phone. “Things are looking more positive in the economy, which will
tend to feed into oil demand.”

Oil also climbed as U.S. equities increased for a fifth day. The
Standard & Poor’s 500 Index rose 0.2 percent to 1,067.68 and the
Dow Jones Industrial Average climbed 0.4 percent to 9,830.02.

“When in doubt about why the oil is moving in a direction, it pays to
take a glance at equities,” said Tim Evans, an energy analyst with Citi
Futures Perspective in New York. “Both the rise in oil and the S&P
point in the direction of economic recovery. We’ve thrown off some of
the pessimism and are looking at a recovery of both the economy and of
energy demand.”

OPEC Output

While the Organization of Petroleum Exporting Countries has pledged to
adhere more closely to output cuts of 4.2 million barrels a day agreed
to last year, some members are bolstering production, according to the
IEA. Supplies from the 11 members subject to quotas, all except Iraq,
rose by 170,000 barrels a day in September, to 26.42 million barrels a
day. That’s about 1.58 million barrels a day more than the 24.845
million target.

Prices dropped early today as the dollar rose after Federal Reserve
Chairman Ben S. Bernanke said monetary policy will be tightened once
the economy improves. A stronger U.S. currency makes commodities less
appealing to investors. The dollar climbed to $1.4708 per euro from
$1.4794 in yesterday.

“The market is stuck in a $65-to-$75 range and on any day there can be
a great deal of volatility,” said Peter Beutel, president of trading
adviser Cameron Hanover Inc. in New Canaan, Connecticut. “The big
debate is whether prices will be determined by supply and demand or by
what’s happening in the financial markets.”

Brent Oil

Brent crude oil for November settlement rose 23 cents, or 0.3 percent,
to end the session at $70 a barrel on the London- based ICE Futures
Europe exchange. It was the highest close since Sept. 22.

Oil may decline next week as fuel supply climbs, a Bloomberg survey
showed. Eleven of 29 analysts and traders, or 38 percent, said futures
will drop through Oct. 16. Ten respondents, or 34 percent, forecast the
market will rise and eight said prices will be little changed.

Oil volume in electronic trading on the Nymex was 498,688 contracts as
of 3:07 p.m. in New York. Volume totaled 779,417 contracts yesterday,
the highest since Aug. 18 and 39 percent more than the average over the
past three months. Open interest was 1.25 million contracts, the most
since Feb. 13.

The exchange has a one-business-day delay in reporting open interest and full volume data.

Source: Bloomberg

Search to find what you want

• Crude oil inventories rise by 2.3 million barrels

    Crude inventories rose last week, while gasoline supplies decreased, the government said Wednesday. Crude inventories rose by 2.3 million barrels, or 0.7 percent, to 329 million barrels, which is 6.1 percent below year-ago levels, according to the Energy Department’s Energy Information Administration’s weekly report. Analysts expected a drop of 1

• U.S. crude oil stocks rose despite the drop-API import

    U.S. crude oil inventories rose above analyst expectations last week, despite a drop in oil imports, the American Petroleum Institute said in a weekly report released Tuesday. Commercial crude oil stockpiles climbed 2.9 million barrels to 337.4 million barrels in the week ending Nov.

• U.S. crude oil stocks fall big log fuels by

    U.S. crude oil stocks posted a much larger-than-anticipated fall last week on lower imports and higher demand from refiners ahead of the Labor Day holiday, the Energy Information Administration said in data released Thursday. Commercial crude oil stocks in the United States fell 5.9 million barrels to 337.5 million barrels in

• Crude oil stocks tumble by 4 million barrels

    Crude inventories fell last week, along with declining gasoline supplies, the government said Wednesday.

• Analysts about the direction of oil prices, Survey Shows Split

    Analysts surveyed by Bloomberg News were split over whether crude oil prices will rise or fall next week amid above-average inventories and prices that are the highest in a year. Twelve of 31 analysts, or 39 percent, said futures will drop through Oct. 23. Another 12 respondents predicted that oil will

• South Korea crude oil imports declines in inventories

    South Korea, Asia’s fourth-largest buyer of crude oil, imported 21 percent less of the fuel in November after domestic inventories rose. Imports dropped to 58.9 million barrels last month from 74.3 million barrels a year earlier, the Ministry of Knowledge Economy said in an e-mailed statement today. Commercial crude-oil inventories

• Crude oil may decline as fuel supplies improve, Survey Shows

    Crude oil futures may decline as U.S. fuel inventories climb and consumption decreases, a Bloomberg News survey showed. Eleven of 29 analysts, or 38 percent, said futures will drop through Oct. 16. Ten respondents, or 34 percent, forecast that the market will rise and eight said prices will be little changed.

• Gasoline Margins case as U.S. stocks Rise, DEMAND

    Gasoline refining margins slipped after a government report that showed motor fuel demand fell a second straight week and inventories increased. Motor-fuel inventories in the week ended Sept. 11 rose 547,000 barrels, or 0.3 percent, to 207.7 million, the Energy Department reported. Demand, based on what blenders and refiners supply to the

• Crude Oil May Decline Next Week as Demand Drops, Survey Shows

    Crude oil futures may decline as refineries slow operations and demand decreases before the North American heating season begins, a Bloomberg News survey showed. Fifteen of 31 analysts, or 48 percent, said futures will drop through Oct. 9. Six respondents, or 19 percent, forecast that the market will rise and

• The amount of oil used at Oman Oil Refineries sinks

    The quantity of oil used at Oman Oil Refineries and Petrochemicals Company declined by 7.2 per cent to 29,822,300 barrels during the first ten months of the year 2009, as compared to 32,149,300 barrels during the same period in 2008. Statistics bulletin issued by the National Economy Ministry pointed out

• Analysts expect the DOE to increase the oil, gasoline stocks

    The Energy Department will likely report a 1.65 million-barrel build in crude oil reserves on Thursday for the week ended Feb. 12, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

• June oil demand by 1.8 percent vs. last estimate: EIA

    U.S. oil demand in June was 339,000 barrels per day more than previously estimated, but consumption for the month was still at its lowest level since 1997, the Energy Information Administration said. June oil demand was revised upward 1.84 percent to 18.762 million bpd from the earlier estimate of 18.423

• Oil rises above $ 70 in Asia, weakening U.S. dollars

    Oil prices rose above $70 a barrel Thursday in Asia amid a weakening U.S. dollar and mixed crude inventory data. Benchmark crude for November delivery was up 61 cents at $70.17 by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost $1.31 to

• Oil rises above $ 70 in Asia, weakening U.S. dollars

    Oil prices rose above $70 a barrel Thursday in Asia amid a weakening U.S. dollar and mixed crude inventory data. Benchmark crude for November delivery was up 61 cents at $70.17 by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost $1.31 to

• Crude Oil May decline in the face of rising fuel supply, survey shows

    Crude oil futures may decline in anticipation of extended increases in U.S. fuel supplies as demand drops. Twenty-four of 44 analysts surveyed by Bloomberg News, or 55 percent, said futures will drop through Oct. 2. Seven respondents, or 16 percent, forecast that the market will rise and 13 said prices