Crude Oil Rises


Crude oil rose in New York on speculation global demand will continue to grow after prices reached a record.

Oil, which jumped as high as $101.32 a barrel yesterday, has climbed 16 percent from this year's low on Feb. 7. Gold, platinum and soybeans also set records this week, shrugging off concerns of a potential U.S. economic slowdown. The International Energy Agency Feb. 13 forecast global oil use may gain by more than 1 million barrels a day in 2008.

Crude oil for April delivery rose as much as 58 cents, or 0.6 percent, to $100.28 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $100.24 at 3:26 p.m. Singapore time.

The March contract expired yesterday at the end of floor trading at $100.74, a second consecutive record close. The contract rose 73 cents, or 0.7 percent. Oil is now 66 percent higher than a year ago.

Global oil demand will rise 1.7 million barrels a day to 87.6 million barrels a day this year, the International Energy Agency said in a monthly report on Feb. 13. The U.S. Energy Department and the Organization of Petroleum Exporting Countries also expect daily consumption to rise by more than 1 million barrels this year.

The IEA, the adviser to 27 oil-consuming nations, predicted Nov. 7 that Chinese and Indian oil imports will almost quadruple by 2030, creating a supply crunch as soon as 2015.

Brent crude for April settlement rose as much as 52 cents, or 0.5 percent, to $98.94 a barrel on London's ICE Futures Europe exchange. It was at $98.91 at 3:26 p.m. Singapore time. The contract yesterday fell 14 cents to close at $98.42. Futures earlier reached $99.22, the highest intraday level since trading began in 1988.


TradingEconomics.com, Bloomberg
2/21/2008 7:15:13 AM