News Flash

Oil rises for 4th day on demand forecast

(Agencies)
Updated: 2010-02-12 01:40

NEW YORK: Crude prices continued to rise this week as a European energy watchdog said global oil demand will grow this year, more than previously expected.

Benchmark crude for March delivery on Thursday added 69 cents at $75.21 a barrel on the New York Mercantile Exchange. In London, Brent crude increased 62 cents to $73.16 a barrel on the ICE futures exchange.

The Paris-based International Energy Agency pushed its estimate for global oil demand slightly higher Thursday, saying that consumption in developing nations will increase. The IEA revised its 2010 demand forecast from 85.3 million barrels daily to 85.5 million barrels.

However, the agency said that oil demand in North America "has virtually stalled as a result of the sharp economic recession, cheaper energy alternatives (natural gas and coal) and behavioral changes (notably the smaller size and greater efficiency of new vehicles sold)."

Meanwhile, the Labor Department said first-time claims for jobless benefits dropped by 43,000 to a seasonally adjusted 440,000. The report raised hopes that the economy may add jobs soon and increase demand for oil and gasoline.

Oil continued to rise even after a blizzard dumped more than a foot (0.3 meters) of snow along parts of the East Coast. The weather grounded thousands of commercial flights and forced motorists in numerous cities to work from home.

The storm forced Continental to cancel at least 900 flights on Wednesday. United and Southwest canceled 600 apiece and American scrubbed hundreds of flights as well.

In other Nymex trading in March contracts, heating oil rose 1.86 cents to $1.9655 a gallon, and gasoline added less than a penny to $1.9313 a gallon. Natural gas gained 3.7 cents to $5.329 per 1,000 cubic feet.