[News] Oil surges 2 percent to near $87 on economy data

[AdminOnline]

(Reuters) - Oil prices rose more than 2 percent on Monday to their highest since October 2008, after U.S. manufacturing, home sales and jobs data boosted optimism about a recovery in the world's top economy.

The U.S. service sector grew in March at its fastest pace in nearly four years while pending home sales also rose, according to the ISM industry survey and a National Association of Realtors report on Monday.

That added to optimism following Labor Department data released on Friday showing U.S. payrolls rose by 162,000 last month, the fastest rate in three years.

U.S. crude oil for May delivery settled up $1.75 to $86.62 a barrel. Prices have risen by 8.3 percent since March 26, in their steepest 5-day winning streak since December.

Brent crude rose $1.87 to settle at $85.88 a barrel.

"Economic optimists have taken control of the market," said Gene McGillian, analyst at Tradition Energy in Connecticut.

"We're in uncharted territory. I think we can keep trending higher."

U.S. markets reopened after a three-day weekend that included the Good Friday holiday. London markets remained closed on Monday for Easter.

Economic recovery bodes well for higher fuel demand in the United States, the largest consumer of oil. Flagging demand has helped bolster U.S. crude oil stocks, which are currently well above the five-year average.

ANALYSTS EXPECT LARGER SUPPLIES

Analysts polled by Reuters forecast weekly inventory from the American Petroleum Institute, due out on Tuesday, and data from the Energy Information Administration on Wednesday will show the 10th straight week of inventory gains.

Oil, natural gas and heating oil all rose sharply in a broad commodities market rally. U.S. equities moved higher, led by shares in energy companies .GSPE, as the Standard & Poor's 500 Index rose to an 18-month high.

The U.S. dollar weakened against a basket of foreign currencies, often an indication that investor funds are flowing away from safe haven assets and into those deemed riskier, such as commodities or equities.

OPEC members, including the world's largest crude exporter Saudi Arabia, said last week at the International Energy Forum in Cancun, Mexico, that they favored an oil price in the $70 to $80 a barrel range. But OPEC, which pumps more than a third of the world's oil, has no immediate plans to revise output targets and produce more crude even with oil near $85, a person familiar with Saudi oil policy told Reuters last week.

Crude prices also rose after reports that a South Korean supertanker was hijacked by Somali pirates off of East Africa over the weekend. The tanker, chartered by U.S. refiner Valero Corp., was carrying around 2 million barrels of Iraqi crude oil -- around 2.4 percent of daily world supply -- toward the U.S. Gulf Coast.

LITTLE RESISTANCE

Technical analysts, who follow the movement of prices on historical charts, have become more bullish and suggest the oil market could move higher in the next few weeks.

"Our take on crude oil prices in the short-term is that we likely will push higher from here," said senior commodities analyst Edward Meir at brokers MF Global.

"Technically, there is very little resistance showing on the charts given the upside breakout evident."

(Additional reporting by Christopher Johnson in London, Nick Trevethan in Singapore and Robert Gibbons in New York; editing by Bob Burgdorfer)

Source - http://www.reuters.com/article/idUSTRE6142V820100405

[dewilliams2]

Yay!!!...we don't suck as much as we did last quarter...our reward is we get to pay more for gas.

I sold the Cadillac and bought a Mazda 626 a year ago...my dad traded his Cadillac in for a Smart Car, mom has a Smart Car to except they kept her Yukon for hauling stuff.

So truly fuel prices don't effect us as bad as they used to but it still sucks...they say the recession began with the housing market collapsing but where it began was with energy prices going up...people had to pay more out of their budget to get around and then they didn't have enough to put towards other things such as their mortgages...so what have we done about energy and energy prices?...nothing....certainly many of us are driving smaller cars now however that will not be a sustainable long term fix...now where is my hydrogen car mother****er????!!!!!

[Cbrider]

I'm kind of in favor of just walking into Iran or some other useless Middle East country that harbors terrorists and taking all the oil we want.

Edit: Also in favor of leveling the entire Somalian coast line.

[AdminOnline]

Couldn't believe Somalia pirates are so notorious till these days..

They had seized a south korean oil tanker recently..

[Lipp]

I'm kind of in favor of just walking into Iran or some other useless Middle East country that harbors terrorists and taking all the oil we want.

Edit: Also in favor of leveling the entire Somalian coast line.

You're saying it as though it hasn't been done already.

The tanker, chartered by U.S. refiner Valero Corp., was carrying around 2 million barrels of Iraqi crude oil -- around 2.4 percent of daily world supply -- toward the U.S. Gulf Coast.

[Cbrider]

You're saying it as though it hasn't been done already.

Oh I know its been done, but there's no sense in stopping there.

[Doc Durian]

I'm kind of in favor of just walking into Iran or some other useless Middle East country that harbors terrorists and taking all the oil we want.

Edit: Also in favor of leveling the entire Somalian coast line.

If you're living in the US, why waste the energy walking? Just stay where you're at. There are plenty of "terrorists" in your neck of the woods. Most of them carry name tags.

[MVPlaya]

I'm kind of in favor of just walking into Iran or some other useless Middle East country that harbors terrorists and taking all the oil we want.

You mean like last time we did that, when Iran was a democracy, and we overthrew their governments to install a corupt Shah who routinely tortured his own citizens, and caused the formation of a radical Islamic government that hates the United States?

Yeah, thats a great idea. No one ever gets hurt when you just go into a country, steal all their oil, destroy their economic livelihood, then pat yourself on the back like you did the world a favor.

[dewilliams2]

Oh I know its been done, but there's no sense in stopping there.

Except of the over extension of our military and we don't have the money for it and there is no point in fighting the wars we are in....Rome, Napoleons France, and Hitlers Nazi's all fell do to overextending their military...Rome also had crippling financial problems and nomadic tribes raiding them constantly.

One of the greatest problems with the way we fight wars now though is we fight as the British did here in America...The British had the greater numbers, technology, officers...what did us Americans have?...we fought dirty until they didn't want to play with us anymore.

We're doing that now in all of our wars...we present a big target and say "shoot us here" instead of fighting guerilla warfare with guerilla warfare...instead of coming down with the hammer just slowly pick away at them like they do us...with small strategic hits and raids using a few people.

As for oil...**** oil...its not our future.

Cbrider...this really wasn't all directed at you...just like the first line and then after that I got on a huge ran...apologies.

[Cbrider]

One day, you guys will learn that I make these posts just to get you all fired up, lol.

[doppelgaenger]

Did you guys know that Kuwait is one of the richest countries in the world? The Kuwaiti dinar is worth about 4 USD. They don't even have taxes.

[dewilliams2]

One day, you guys will learn that I make these posts just to get you all fired up, lol.

Doesn't really matter your intentions...I'll pretty much respond regardless just to make sure your not putting ideas in the heads of others....thats entirely my job.