Bloomberg Oil Rises to 7-Month High, Gasoline Surges, on Demand Outlook

June 11 (Bloomberg) -- Crude oil climbed to a seven-month high and gasoline surged after the International Energy Agency raised its global demand forecast.

The IEA, adviser to 28 nations, increased its consumption outlook for the first time since August amid signs the recession is bottoming out. Nouriel Roubini, the New York University professor who predicted the financial crisis, said crude will likely touch $100 a barrel next year. Oil also advanced as equities rose on lower jobless claims in the U.S.

“Futures are forward-looking and the market is discounting any present difficulties,” said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois, energy consultant. “It looks like we’ve seen the worst of the recession and demand will start to improve during the second half of the year.”

Crude oil for July delivery rose $1.35, or 1.9 percent, to $72.68 a barrel at 2:42 p.m. on the New York Mercantile Exchange, the highest settlement since Oct. 20. Prices are up 63 percent this year.

Gasoline for July delivery gained 4.96 cents, or 2.5 percent, to end the session at $2.0649 a gallon in New York. It was the highest settlement since Oct. 3.

The Paris-based IEA increased its global estimate for daily oil demand by 120,000 barrels to 83.3 million barrels in its monthly report. The gain was driven by the U.S. and China. Consumption worldwide will contract by 2.9 percent from last year, the biggest drop since 1981, the adviser said. more...

Bloomberg Oil Rises to 7-Month High, Gasoline Tops $2, on Stockpile Drop

June 10 (Bloomberg) -- Crude oil rose to a seven-month high and gasoline futures climbed above $2 a gallon for the first time since October after a government report showed that U.S. crude and fuel supplies unexpectedly fell.

Stockpiles of oil dropped 4.38 million barrels to 361.6 million in the week ended June 5, the Energy Department said today. Analysts surveyed by Bloomberg News said supplies would rise by 100,000 barrels. Gasoline inventories slipped for a seventh week.

“This was an incredibly bullish report,” said Mike Zarembski, senior commodity analyst at OptionsXpress Holdings Inc. in Chicago. “There were big drops in both crude oil and gasoline, falling imports and increased gasoline demand.”

Crude oil for July delivery rose $1.32, or 1.9 percent, to $71.33 a barrel at 2:44 p.m. on the New York Mercantile Exchange, the highest settlement since Oct. 20. Prices are up 60 percent this year.

Gasoline for July delivery rose 4.86 cents, or 2.5 percent, to $2.0153 a gallon in New York, the highest close since Oct. 9.

Pump prices are climbing along with futures. Regular retail gasoline, averaged nationwide, rose to $2.627 a gallon, the highest since October, AAA, the nation’s biggest motoring organization, said today on its Web site. Prices have jumped 28 percent since April 28, the last day there was a decline.

Stockpiles of gasoline fell 1.55 million barrels to 201.6 million, the report showed. A 750,000-barrel increase was forecast, according to the median of 14 estimates by analysts surveyed before today’s report. more...

Bloomberg Oil Rises to 7-Month High, Gasoline Surges, on Goldman Forecast

June 4 (Bloomberg) -- Crude oil rose to a seven-month high and gasoline surged after Goldman Sachs Group Inc. said prices may reach $85 a barrel by the end of the year as demand recovers and supplies shrink.

Oil climbed more than 4 percent after the bank increased its year-end forecast from $65 and withdrew a prediction that prices will dip prior to a rally. The advance accelerated after a report showed that fewer Americans filed claims for unemployment benefits last week.

“There seems to be a growing realization that oil will end the year in the $80 area, and this is spurring some buying,” said John Kilduff, senior vice president of energy at MF Global in New York. “The market is taking a little bit of solace from today’s unemployment numbers.”

Crude oil for July delivery rose $2.69, or 4.1 percent, to $68.81 a barrel at 2:51 p.m. on the New York Mercantile Exchange, the highest settlement since Nov. 4. It was the biggest gain since May 18. Prices are up 54 percent this year.

Gasoline for July delivery rose 6.05 cents, or 3.2 percent, to end the session at $1.9621 a gallon in New York. It was the highest settlement since Oct. 9. more...