Oil jumps 2.5 percent on strong economic data
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NEW YORK (Reuters) - Oil surged 2.5 percent on Friday, nearing a fresh peak as strong economic data reignited a rally that has added more than 40 percent to prices since August.
U.S. oil settled up $2.44 to $95.93 a barrel, close to the record $96.24 hit earlier in the week, while Brent crude rose $2.36 to $92.08 a barrel.
"Today's rebound is a continuation of the major bull trend, said Andy Lebow, broker at MF Global in New York.
"The rally is being fueled by a weak dollar and U.S. economic data in the past two days that shows strength in the third quarter, though concerns are there for the upcoming fourth quarter and the first quarter of next year," he added.
U.S. data on Friday showed employers added 166,000 new nonfarm jobs in October, double the number economists had forecast amid concern the credit crisis would drag down the world's largest economy.
Earlier in the week, the U.S. government said the economy grew at a brisk 3.9 percent in the third quarter, undermining fears that a sluggish economy will further erode the pace of U.S. energy demand.
Concerns about tight supplies ahead of the Northern Hemisphere winter, geopolitical tensions and rising speculator interest have added to oil's record run.
WINTER WORRIES
The price spike has raised concerns among oil consuming nations. U.S. Energy Information Administration (EIA) administrator Guy Caruso said that if OPEC did not crank up production, markets would be short of oil early next year.
The Organization of the Petroleum Exporting Countries, which supplies more than a third of the world's oil, has rejected any talk of supply tightness and blamed speculators, political tensions and a weak dollar for driving up oil.
OPEC in September agreed to boost supplies by 500,000 barrels a day from November 1, but has resisted consumer calls for any more oil. The group increased oil production in October, a Reuters survey showed Friday.
OPEC heads of state are due to meet in Riyadh this month.
Forecasters said the first bout of cold weather in the U.S. Northeast -- the world's biggest heating oil market -- will hit next week.
Meanwhile, France has drawn 285,000 tons of heating oil from nonstrategic stockpiles following delays in restarting production at France's Gonfreville refinery, an adviser to the French economy minister confirmed Friday.
(Additional reporting by Jane Merriman and Santosh Menon)
