(DIG/DUG/USO) Crude Oil Climbs a Fourth Day on Improved Outlook for Demand
By Ben Sharples
Feb. 11 (Bloomberg) -- Crude oil rose for a fourth day in New York after the U.S. Energy Department increased its forecast for global oil consumption this year.
Oil climbed as the department raised its demand projection to 85.3 million barrels a day from 85.18 million, according to its monthly Short-Term Energy Outlook. Prices also gained on prospects that Germany and France will help Greece overcome its crippling budget deficit.
“Oil rose after a bullish outlook” from the department, said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “There are definitely more optimistic signs that Greece will be bailed out.”
Crude oil for March delivery gained as much as 36 cents, or 0.5 percent, to $74.88 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $74.87 at 12:15 p.m. in Sydney. Yesterday, it rose 77 cents to settle at $74.52.
The Organization of Petroleum Exporting Countries yesterday also increased its forecast for the amount of crude its members may be called on to supply in 2010, by 150,000 barrels a day.
Germany and France are leading talks to help Greece as long as it sticks to a program to reduce the European Union’s biggest budget deficit, officials said yesterday. The euro’s slide to a nine-month low and a slump in bond prices prompted leaders to hold talks on assistance for Greece.
The dollar traded at $1.3771 per euro at 12:12 p.m. Sydney time, from $1.3737 yesterday.
Crude Stockpiles
Oil futures prices increased yesterday as the U.S. Treasury Department announced restrictions on four companies and one individual with links to Iran’s Islamic Revolutionary Guard Corps. The U.S. has accused the Guard of developing weapons of mass destruction and supporting terrorism.
The U.S. has been trying to rally countries to sanction Iran, OPEC’s second largest oil producer, as the government in Tehran resists pressure to scale back its uranium enrichment work. Secretary of State Hillary Clinton has signaled the U.S. wants to target the Revolutionary Guard, an elite military branch with extensive business interests.
Oil dropped as much as 1.6 percent yesterday after an industry report showed a larger-than-expected increase in crude stockpiles and Chairman Ben S. Bernanke said the Federal Reserve may raise the discount rate “before long” as it moves to normalize Fed lending.
The industry-funded American Petroleum Institute reported this week that U.S. crude inventories climbed to the highest level since October. Stockpiles gained 7.2 million barrels to 337.6 million last week, according to the Washington-based group.
An Energy Department inventory report scheduled for yesterday was delayed until tomorrow because of the government shutdown in Washington cause by a snow storm. The report may show stockpiles of oil grew by 1.6 million barrels, according to a Bloomberg survey of 16 analysts.
Brent crude oil for March settlement added 41 cents, or 0.6 percent, to $72.54 a barrel on the London-based ICE Futures Europe exchange yesterday. The March contract expires today. The more actively traded April contract rose 0.6 percent to $73.12.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
Last Updated: February 10, 2010 20:18 EST
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