* Asian stock markets jump on economy optimism
* Fibonacci shows correction to $74.21 []
* Coming Up: Eurozone August consumer sentiment; 0900 GMT
(Recasts with steady prices, adds money managers, Brent
prices)
By Alejandro Barbajosa
SINGAPORE, Aug 30 (Reuters) - Oil stayed near an eight-day
high above $75 on Monday as sustained momentum from Federal
Reserve Chairman Ben Bernanke's speech last week boosted Asian
stock markets.
Japanese shares jumped more than 3 percent while the yen
fell as the Bank of Japan held an emergency meeting to curb a
rise in the Japanese currency that threatens a fragile economic
recovery. []
Oil prices also received support from increased hurricane
activity in the Atlantic Ocean, with storms expected to follow
paths closer to the United States.
U.S. crude for October <CLc1> rose 3 cents to $75.20 a
barrel by 0352 GMT, having earlier approached Friday's peak at
$75.59, the highest intraday price since Aug. 19. ICE Brent for
October <LCOc1> rose 2 cents to $76.67.
Oil gained 2.5 percent on Friday following a speech by
Bernanke that calmed fears of a double-dip recession. Prices
earlier in the week had dropped to an 11-week intra-day low of
$70.76.
"The stock markets in Asia are very good at the moment, and
that's supportive for the crude oil market," said Ken Hasegawa,
a commodity derivatives manager at brokerage Newedge in Japan.
"For the next two months, hurricane information will also
be supportive, and if there is a supply disruption, then the
price goes to $80."
Other commodities also extended sharp gains on Friday,
lifted by a downward revision to U.S. growth that was not as
severe as anticipated. []
U.S. gross domestic product growth for the second quarter
was revised down to only 1.6 percent, from 2.4 percent, the
Commerce Department said on Friday. []
Many economists had forecast an even bigger downward
revision to 1.4 percent growth, compared with 3.7 percent in
the first quarter. But most still do not believe the economy
will slide back into recession and say the most likely prospect
is for continued slow expansion.
BERNANKE REASSURES
In remarks prepared for delivery at a Fed conference, Fed
Chairman Bernanke said the central bank was ready to take
further steps if needed to spur the stumbling economy.
"Stimulus would be good support for this market, but there
is still no power to move prices to $85 or $90," Hasegawa said.
Hurricane Earl was expected to sweep past the Virgin
Islands and Puerto Rico as a major hurricane on Monday, before
turning towards the northwest to weaken and approach the
mid-Atlantic U.S. coast, the National Hurricane Centre (NHC)
said in its latest advisory. []
On the heels of Earl, an area of low pressure in the
central Atlantic Ocean had an 80 percent chance of becoming a
tropical cyclone in the next 48 hours, according to the NHC. It
was still too early to determine whether this system would take
a similar track to hurricanes Danielle and Earl, forecast to
stay well away from the oil-rich Gulf of Mexico.
Money managers cut net long crude oil positions on the New
York Mercantile Exchange to 73,475 in the week through Aug. 24,
the Commodity Futures Trading Commission said on Friday, from
108,874 in the week to Aug. 17. []
(Reporting by Alejandro Barbajosa; Editing by Clarence
Fernandez)
