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Crude futures rise another 2%, tracking stock gains

By Polya Lesova, MarketWatch
Last update: 9:05 a.m. EST Feb. 26, 2009NEW YORK (MarketWatch) -- Crude-oil futures rose to trade above $43 a barrel Thursday, buoyed by a decline in gasoline inventories as well as an impending higher open on Wall Street.
Crude for April delivery gained 87 cents, or 2%, to $43.35 a barrel in electronic trading on Globex. On Wednesday, oil futures rallied more than 6%.
Falling U.S. gasoline supplies "sparked speculation that fuel demand may improve," noted analysts at Action Economics.
The nation's gasoline consumption during the past four weeks rose 1.7% from a year ago, the Energy Information Administration reported Wednesday. Gasoline inventories fell by 3.4 million barrels for the week ended Feb. 20, more than analysts surveyed by Platts had expected.
"This week's data showed a rise in gasoline demand, but due to lower prices at the pump; therefore, as energy prices rise, this demand would once again dissipate, hence restricting a sustained rally," said Nimit Khamar, an analyst at Sucden Financial Research.
"A sustained rally beyond $50 is unlikely," Khamar said.
Also Thursday, U.S. stock futures advanced, with the broader market looking past the red ink reported by General Motors Corp., among other factors. See Indications.
Video: Strategies for a Volatile Market
MarketWatch's Polya Lesova speaks to "Discover the Upside of Down" author Ron Coby about opportunities in an ailing market.There was more gloomy news on the economic front for energy traders to consider as well.
First-time applications for state unemployment benefits rose by 36,000 last week to a seasonally adjusted 667,000, continuing a persistent trend. The level of initial claims is the highest since October 1982. See Economic Report.
Separately, orders for U.S.-made durable goods fell again, down a deeper-than-expected 5.2% in January. Orders had never fallen six months in a row since the data collection began in 1992. Read more.
Also in energy trading, March reformulated gasoline gained 3 cents to $1.20 a gallon and March heating oil rose 1 cent to $1.25 a gallon. Both contracts will expire at the end of trading on Feb. 27.
Meanwhile, natural gas for April delivery added 2 cents to stand at $4.04 per million British thermal units.
The EIA will report data on natural-gas supplies at 10:30 a.m. Eastern on Thursday. IHS Global Insight is projecting a storage withdrawal of 145 billion cubic feet for the week ended Feb. 20.
Polya Lesova is a New York-based reporter for MarketWatch