Crude traded near its highest close in a week after a measure of U.S. manufacturing beat estimates and before a report forecast to show shrinking fuel inventories in the world’s biggest oil consumer.
Oil climbed to the highest level in more than four months as the Federal Reserve’s plan to buy mortgage securities boosted demand for commodities and stocks.
Oil rose for a fifth day on speculation that the Federal Reserve will announce additional measures to stimulate the economy, increasing fuel demand.
Oil prices may surge if Europe resolves its sovereign debt crisis, bolstering demand while stockpiles are down, said David Greely, head of energy research at Goldman Sachs Group Inc. in New York.
Oil climbed to a three-month high in New York on speculation that euro-area leaders will make progress in resolving the region’s debt crisis this week.
Oil prices may rebound if government policy makers take steps to contain the European debt crisis and counter weaker economic growth in the U.S. and China, according to Goldman Sachs Group Inc.
Oil prices are rising because of an improving economic outlook rather than geopolitical tension with Iran, according to Goldman Sachs Group Inc.
U.S. gasoline prices at the pump, headed to $4 a gallon in April, are dropping toward $3 as the July Fourth holiday approaches, giving consumers relief and a boost to President Barack Obama’s re-election campaign.
Oil rose for the first time in seven days in New York after China pledged to boost the nation’s economy and Goldman Sachs Group Inc. said the balance between supply and demand of crude is tightening.
Oil climbed to a five-week high after U.S. manufacturing increased at the fastest pace in 10 months, signaling that economic growth will accelerate in the world’s biggest crude-consuming country.
"With an improving outlook for non-OPEC supply growth in 2013, we are lowering our Brent crude oil price forecast."
- David Greely on Oct 18, 2012