Friday, March 5, 2010

Commodity Watch: Oil near $81/bbl

Nymex crude oil futures are poised for the third weekly gain in four; on optimism fuel demand will increase amid improved prospects for an economic recovery in the world's biggest energy consumer.

Crude oil for April delivery rose as much as 60 cents to $80.81 a barrel, in electronic trading on the New York Mercantile Exchange. The contract was last trading at $80.57, up 36 cents.

Oil also gained on a report that the Organization of Petroleum Exporting Countries (OPEC) will cut shipments by 2.3% in the month ending March 20.

Crude pared yesterday's 0.8% decline after US initial jobless applications fell in the week ended February 27, easing concerns that a jobs report today will signal a deteriorating labor market.

The contract settled 66 lower at $80.21. Meanwhile, oil prices are poised for a 1.2% gain this week.

Sourcs BloombergUTV

Lable:oil price,commodity price

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