Oil Prices Surge 9% After Government Report Claims Surging Demand
http://news.yahoo.com/s/nm/20090305/bs_nm/us_markets_oilOh puhleeze... gimme a break. Gasoline demand, now that close to 20% of the people don't have jobs, is significantly higher now than a year ago? We might be dhimmis but we (or at least not all of us--you only won by 53%) are not idiots. Please don't insult our intelligence. You can cook up any numbers you want to increase the profits of your hellhole countries of origin and sympathy, but we don't have to believe your lies.
Oil steady above $45 after 9 percent jump
By Jennifer Tan
SINGAPORE (Reuters) – Oil hovered above $45 on Thursday, after surging nearly 9 percent overnight on government data showing a surprise drop in U.S. crude stocks, which could signal recovering demand in the world's top energy consumer.
Traders will await the release of weekly U.S. initial jobless benefit claims and January factory orders due later in the day, as well as February unemployment data out on Friday, for further clues on the health of the U.S. economy.
Prices were also supported by remarks by China's Premier Wen Jiabao on Thursday that No. 2 oil consumer China would achieve 8 percent growth this year -- a level considered key to maintain employment growth -- despite the deepening global economic crisis.
U.S. crude was down 24 cents at $45.14 a barrel by 0415 GMT, after rising $3.73 overnight, while London Brent crude fell 42 cents to $45.70 a barrel.
"The momentum is bullish and could have a few legs -- China is really engaged on the front foot with its stimulus package, and we're approaching the end of winter and going into a period where the driving season in the U.S. starts, so we might see crude inventories fall further," said Peter McGuire, Managing Director of Commodity Warrants Australia.
"I wouldn't be surprised to see crude edging up to test the high $40s by mid-month, maybe even touching $50."
The U.S. Energy Information Association said crude stocks declined by 700,000 barrels last week, countering analyst expectations for a 1.2-million-barrel build. (Yeah, I really believe it that with the economy the worst it has been since the Depression, everybody is scrambling to go on long road trips. But I know you think infidels don't have a brain, Mr. Pigsident.)
Demand for gasoline over the past four weeks also rose 2.2 percent from a year ago. Year-over-year gasoline demand has increased in the last several weeks, possibly indicating the start of a rebound in demand. (Yeah, and your pastor isn't a racist.)
China's gauge of the health of its manufacturing sector, the purchasing managers' index (PMI), gained for the third month in a row in February, suggesting the domestic economy, and oil demand, could be recovering. (Possible, as I guarantee you some of the millions who were laid off in America had their jobs magically reappear in the hands of thirteen-year-old sweatshop girls.)
Premier Wen did not announce fresh economic stimulus as some investors had hoped, but his assurances helped extend a rally in Asian markets, after shares worldwide surged on Wednesday on reports China may boost spending to spur growth.
TO CUT OR NOT TO CUT?
Optimism over China helped boost global stocks from multiyear lows on Wednesday, while metals prices rose, and the U.S. dollar scaled four-month peaks against the yen.
Oil prices have traded in a narrow band around $40 since mid-December, pressured by slumping demand from the global economic downturn, but drawing support from expectations OPEC might cut production again when it meets on March 15.
OPEC planned to lower oil output by 4.2 million barrels per day from production levels in September, in a bid to boost falling prices, and a Reuters survey found OPEC members had already met at least 81 percent of their target.
Angola, which currently holds the presidency of the 12-member group, will not advocate further production cuts when the group meets on March 15 in Vienna, OPEC sources said on Wednesday.
Ecuador also said it sees no need for more reductions at the next meeting, while other OPEC members have yet to make a decision.
But Venezuela, Algeria and Libya have raised the possibility of a further cut.
In the United States, last week's first-time claims for jobless benefits, due at 1330 GMT, are likely to show a total of 650,000 new filings, compared with 667,000 in the prior week.
January factory orders, due at 1500 GMT, are expected to fall 3.5 percent, down from a 3.9 percent drop in the previous month.
But Friday's employment report could show job losses accelerated last month, and the unemployment rate surged to a 25-year high. The market consensus is that non-farm payrolls shed about 650,000 jobs in February.
(Editing by Clarence Fernandez)
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