Oil hits 7-month high on U.S. jobs data

Goldman Sachs raises its 2009 forecast from $65 to $85 a barrel and introduces 2010 forecast of $95.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

Click on the chart to see other government bond prices and yields.
To buy or not to buy?
From a 1997 Mercury Cougar to a 2009 Honda Pilot, 8 readers tell us why they decided to buy a new car or keep their old wheels.

Find your next Car

How secure do you feel in your job?
  • Extremely secure
  • Fairly secure
  • A little insecure
  • Not secure at all

NEW YORK (Reuters) -- Oil prices rose to a seven-month high near $69 a barrel Thursday after U.S. data showed a drop in jobless claims, boosting expectations of an economic recovery that could revive ailing energy demand.

U.S. investment bank Goldman Sachs (GS, Fortune 500) said an economic rebound, alongside production cuts by the OPEC cartel, could propel crude to $85 a barrel by the end of the year and to $95 a barrel by the end of 2010.

"For the better or for the worse, a switch in the Goldman price forecast rarely does not have a price influence, and we will need to take it as a market input for the next few days," Petromatrix analyst Olivier Jakob said.

U.S. crude for July delivery rose $2.69 to settle at $68.81 a barrel Thursday, after briefly touching $69.60, the highest since early November.

The number of U.S. workers filing new claims for jobless benefits fell for a third straight week, government data showed on Thursday, indicating some loss of force in the pace of the job market's deterioration.

"As has been the case lately, constructive economic data has been used as an indicator that the economy will improve and that oil demand will follow," said Peter Beutel, president of trading consultants Cameron Hanover in New Canaan, Conn.

"But fundamentals at this point do not justify the current prices for crude futures," he added.

Oil closed more than $2 a barrel lower onWednesday, after the Energy Information Administration reported U.S. crude inventories rose 2.9 million barrels; analysts polled by Reuters had expected a decline of 1.4 million barrels.

Inventories of crude oil have swelled since the start of the economic crisis last autumn as global energy demand dipped for the first time in a quarter century.

Aside from brimming onshore storage levels, some 100 million barrels of crude oil have been stowed away on vessels at sea, French oil major Total's head of strategy and planning told the Reuters Global Energy Summit Thursday.

Concerns over weak demand and rising inventories have led producer group OPEC to agree to 4.2 million barrels per day worth of crude oil output cuts since September.

Saudi Oil Minister Ali al-Naimi has said OPEC would wait until crude inventories fall to around 53 days of forward cover -- nearly 10 days below current levels -- before considering raising output again. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Copyright 2009 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.