<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>May 9, 2009
</TR><!-- headline one : start --><TR>Oil hits near 6 mth high <!--10 min-->
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<!-- START OF : div id="storytext"-->NEW YORK - OIL rose more than 3 per cent on Friday to touch a near six-month high as the results of the US governments stress test for big banks and US jobs data added to optimism about the economy.
US crude gained US$1.92 to settle at US$58.63 (S$85.54) a barrel, after earlier touching US$58.69, the highest level since November 17. Brent crude settled up US$1.67 at US$58.14 a barrel.
Oil, battered as the economic crisis slowed demand and sent prices down from a record over US$147 a barrel in July, has risen over the past two months as hopes the economic recession may be easing lifts stock markets.
"Crude futures are higher because people think the sky is no longer falling. A month ago, you wouldn't think they would think that way, but now they're buying," said Mark Waggoner, president of Excel Futures in Huntington Beach, California.
"On the economy, from the middle of the week, we've seen positive numbers on jobs - private sector jobs, jobless benefit claims and now smaller than expected job losses last month."
US stocks gained after the stress test results fuelled financial stocks, and data showed employers cut fewer-than-expected jobs in April. US employers cut 539,000 jobs last month, the fewest since October, signalling the economy's steep decline might be easing and giving the stock market a boost.
Signs of a potential economic recovery have helped increase oil prices by around 70 per cent from February lows below US$34 a barrel, though analysts say oil's positive correlation to equities markets could be cut if rising inventories weigh on crude's rally.
US crude oil stocks rose to fresh 19-year highs, according to US government data, while inventories at sea have surged as well this year.
Iran's OPEC governor said rising stockpiles may force the oil producer group to reduce its output ceiling when it next meets on May 28, Iran's Mehr News Agency reported. OPEC has already agreed to reduce production since September by about 4.2 million barrels per day (bpd), or about 5 per cent of world supply. It is estimated to have delivered about 80 per cent of those cuts so far. -- REUTERS
</TR><!-- headline one : start --><TR>Oil hits near 6 mth high <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->NEW YORK - OIL rose more than 3 per cent on Friday to touch a near six-month high as the results of the US governments stress test for big banks and US jobs data added to optimism about the economy.
US crude gained US$1.92 to settle at US$58.63 (S$85.54) a barrel, after earlier touching US$58.69, the highest level since November 17. Brent crude settled up US$1.67 at US$58.14 a barrel.
Oil, battered as the economic crisis slowed demand and sent prices down from a record over US$147 a barrel in July, has risen over the past two months as hopes the economic recession may be easing lifts stock markets.
"Crude futures are higher because people think the sky is no longer falling. A month ago, you wouldn't think they would think that way, but now they're buying," said Mark Waggoner, president of Excel Futures in Huntington Beach, California.
"On the economy, from the middle of the week, we've seen positive numbers on jobs - private sector jobs, jobless benefit claims and now smaller than expected job losses last month."
US stocks gained after the stress test results fuelled financial stocks, and data showed employers cut fewer-than-expected jobs in April. US employers cut 539,000 jobs last month, the fewest since October, signalling the economy's steep decline might be easing and giving the stock market a boost.
Signs of a potential economic recovery have helped increase oil prices by around 70 per cent from February lows below US$34 a barrel, though analysts say oil's positive correlation to equities markets could be cut if rising inventories weigh on crude's rally.
US crude oil stocks rose to fresh 19-year highs, according to US government data, while inventories at sea have surged as well this year.
Iran's OPEC governor said rising stockpiles may force the oil producer group to reduce its output ceiling when it next meets on May 28, Iran's Mehr News Agency reported. OPEC has already agreed to reduce production since September by about 4.2 million barrels per day (bpd), or about 5 per cent of world supply. It is estimated to have delivered about 80 per cent of those cuts so far. -- REUTERS
