NEW YORK, Oct 12 (Reuters) - U.S. crude oil futures ended
at a seven-week high on Monday, rising for a third day in a row
as a weak dollar attracted buyers.
Cooler temperatures and optimism about an economic recovery added support.
The dollar was mostly lower on Monday as investors shunned it for higher-yielding currencies and assets, on the belief that corporate quarterly earnings, including from some top U.S. banks, will top forecasts.
'Obviously, bearish fundamentals are being overshadowed for the time being by increased interest in the oil as an asset class mainly in conjunction with the weaker dollar,' said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
'Of course, technical factors are also at play as fresh multiweek highs tend to encourage additional capital entry into the long side,' he added.
Wall Street, which rose on corporate earnings optimism, was up for most of the day. But in late session, and after the energy futures had settled, U.S. equities lost ground, with investors locking in profits in cautious trading before more corporate earnings reports trickle in.
Heating oil futures also gained for the third consecutive day while gasoline futures ended on the plus column for the second straight day.
Temperatures in the heating oil-consuming U.S. Northeast were expected to average near to below normal through Wednesday, below normal Thursday, and near to below normal Friday, private forecaster DTN Meteorlogix said.
U.S. Midwest temperatures were to average below normal Tuesday, near to below normal Wednesday, below normal Thursday, and near to below normal on Friday.
'Get the earmuffs out. Oil bears get frosted as cold temperatures give the energy complex a Columbus Day boost,' said Phil Flynn, analyst at PFGBest Research in Chicago.
Oil trading sources also pointed to North Korea's reported missile tests and the ongoing dispute with Iran as adding to the bullish flavor of trading on Monday.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $70.57/$70.13
Technical support/resistance:
NYMEX crude: $72.05/$75.00
NYMEX heating oil: $1.80/$1.92
NYMEX RBOB: $1.7439/$1.80
PRICES
* On the New York Mercantile Exchange, November crude closed up $1.50, or 2.09 percent, at $73.27 a barrel, the highest settlement since Aug. 24's $74.37. It traded from $72.05 to $73.84, the highest since the intraday high of $75 on Aug. 25, which was the year's high and highest since the intraday prices hit $75.69 on Oct. 21, 2008.
* In London, November Brent crude settled up $1.36, or 1.94 percent, at $71.36 a barrel, the highest settlement since Sept. 17's $71.55. It traded from $70.29 to $72.02, the highest since Sept. 17's $72.20 intraday high.
* NYMEX November RBOB ended up 3.10 cents, or 1.75 percent, at $1.7990 a gallon, the highest since Sept. 18's close at $1.8324. It traded from $1.7731 to $1.8163, the highest since the intraday peak of $1.8365 on Sept. 21.
* NYMEX November heating oil settled up 4.16 cents, or 2.25 percent, at $1.8944, the highest close since $1.9234 on Aug. 24. It traded from $1.8652 to $1.9150, the highest since Aug. 25's intraday high of $1.9283.
* The November/November RBOB crack spread ended at $2.29, down from $2.49 on Friday. The November/November heating oil crack spread ended at $6.29, rising from $6.05 on Friday.
* The spread between the current front month and the five-year forward crude contract ended at $14.25, narrowing from $14.62 on Friday. The November 2014 contract settled Monday at $87.52, up $1.13, or 1.31 percent.
MARKET NEWS
* Exxon Mobil restarted a hydrocracker at its massive Baytown, Texas, refinery over the weekend after it shut Friday due to a compressor snag.
* An Israeli-U.S. test of strategic missile defenses that had been expected to begin on Monday has been postponed to next week, an Israeli defense official said.
* U.S. crude oil inventories gained 700,000 barrels last week, a Reuters preliminary poll showed. Distillate stocks fell and gasoline stocks rose, the poll showed.
* Because of Monday's Federal holiday for Columbus Day, industry and government oil inventory reports will be delayed a day. For a report on the changes click:.
For a list of refinery maintenance, snags or restarts, click on
(Reporting by Gene Ramos and Robert Gibbons; Editing by Lisa Shumaker)
((Gene.ramos@thomsonreuters.com; +1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)) Keywords: MARKETS ENERGY NYMEX (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Cooler temperatures and optimism about an economic recovery added support.
The dollar was mostly lower on Monday as investors shunned it for higher-yielding currencies and assets, on the belief that corporate quarterly earnings, including from some top U.S. banks, will top forecasts.
'Obviously, bearish fundamentals are being overshadowed for the time being by increased interest in the oil as an asset class mainly in conjunction with the weaker dollar,' said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
'Of course, technical factors are also at play as fresh multiweek highs tend to encourage additional capital entry into the long side,' he added.
Wall Street, which rose on corporate earnings optimism, was up for most of the day. But in late session, and after the energy futures had settled, U.S. equities lost ground, with investors locking in profits in cautious trading before more corporate earnings reports trickle in.
Heating oil futures also gained for the third consecutive day while gasoline futures ended on the plus column for the second straight day.
Temperatures in the heating oil-consuming U.S. Northeast were expected to average near to below normal through Wednesday, below normal Thursday, and near to below normal Friday, private forecaster DTN Meteorlogix said.
U.S. Midwest temperatures were to average below normal Tuesday, near to below normal Wednesday, below normal Thursday, and near to below normal on Friday.
'Get the earmuffs out. Oil bears get frosted as cold temperatures give the energy complex a Columbus Day boost,' said Phil Flynn, analyst at PFGBest Research in Chicago.
Oil trading sources also pointed to North Korea's reported missile tests and the ongoing dispute with Iran as adding to the bullish flavor of trading on Monday.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $70.57/$70.13
Technical support/resistance:
NYMEX crude: $72.05/$75.00
NYMEX heating oil: $1.80/$1.92
NYMEX RBOB: $1.7439/$1.80
PRICES
* On the New York Mercantile Exchange, November crude closed up $1.50, or 2.09 percent, at $73.27 a barrel, the highest settlement since Aug. 24's $74.37. It traded from $72.05 to $73.84, the highest since the intraday high of $75 on Aug. 25, which was the year's high and highest since the intraday prices hit $75.69 on Oct. 21, 2008.
* In London, November Brent crude settled up $1.36, or 1.94 percent, at $71.36 a barrel, the highest settlement since Sept. 17's $71.55. It traded from $70.29 to $72.02, the highest since Sept. 17's $72.20 intraday high.
* NYMEX November RBOB ended up 3.10 cents, or 1.75 percent, at $1.7990 a gallon, the highest since Sept. 18's close at $1.8324. It traded from $1.7731 to $1.8163, the highest since the intraday peak of $1.8365 on Sept. 21.
* NYMEX November heating oil settled up 4.16 cents, or 2.25 percent, at $1.8944, the highest close since $1.9234 on Aug. 24. It traded from $1.8652 to $1.9150, the highest since Aug. 25's intraday high of $1.9283.
* The November/November RBOB crack spread ended at $2.29, down from $2.49 on Friday. The November/November heating oil crack spread ended at $6.29, rising from $6.05 on Friday.
* The spread between the current front month and the five-year forward crude contract ended at $14.25, narrowing from $14.62 on Friday. The November 2014 contract settled Monday at $87.52, up $1.13, or 1.31 percent.
MARKET NEWS
* Exxon Mobil restarted a hydrocracker at its massive Baytown, Texas, refinery over the weekend after it shut Friday due to a compressor snag.
* An Israeli-U.S. test of strategic missile defenses that had been expected to begin on Monday has been postponed to next week, an Israeli defense official said.
* U.S. crude oil inventories gained 700,000 barrels last week, a Reuters preliminary poll showed. Distillate stocks fell and gasoline stocks rose, the poll showed.
* Because of Monday's Federal holiday for Columbus Day, industry and government oil inventory reports will be delayed a day. For a report on the changes click:.
For a list of refinery maintenance, snags or restarts, click on
(Reporting by Gene Ramos and Robert Gibbons; Editing by Lisa Shumaker)
((Gene.ramos@thomsonreuters.com; +1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)) Keywords: MARKETS ENERGY NYMEX (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
