* Some cos evacuate nonessential workers on storm threat
* Markets get a lift from strong earnings
* Investors awaiting results of European stress tests
* Coming up: CFTC positions data Friday, 3:30 p.m. EDT
By Robert Gibbons
NEW YORK, July 22 (Reuters) - Oil jumped more than 3
percent to a 11-week high above $79 a barrel on Thursday as a
potential tropical storm threatened energy installations in the
Gulf of Mexico and strong earnings boosted investor sentiment.
Some companies operating in U.S. waters off the Gulf Coast
pulled nonessential workers on forecasts a tropical depression
off the Bahamas could become a storm over the next 12 hours.
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Forecasts call for the storm to pass over key oil and
natural gas production areas before making landfall in
Louisiana or Texas in four days. []
All of the weather models forecast the depression to skirt
south of Florida and move northwest across the oil producing
central Gulf of Mexico before hitting the coast of Louisiana or
Texas.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on storm and its threat to energy infrastructure:
http://www.reuters.com/subjects/hurricanes
Link to the NHC: http://www.nhc.noaa.gov/
Link to weather models: http://www.skeetobiteweather.com/
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
U.S. crude oil for September delivery <CLc1> settled up
$2.74, or 3.58 percent, at $79.30 a barrel, the highest
settlement since May 5. Trading ranged from $76.16 to $79.42,
highest intraday peak since prices reached $80.39 on May 6, and
breaking through key resistance in afternoon activity.
"What matters is the June 28 high of $79.38 was bested by
today's peak, which breaks the series of lower highs," said
Mike Fitzpatrick, vice president at MF Global in New York.
London ICE Brent futures <LCOc1> rose $2.45 to settle at
$77.82 a barrel.
Further support came as major companies including UPS and
3M, reported strong revenues, easing investor concerns about
future growth and boosting U.S. stocks. []
"You had the euro zone data and equities are very strong
despite the jobless claims rising. We've not seen the dollar
index getting pounded like this in a while," said Addison
Armstrong, analyst at Tradition Energy in Stamford,
Connecticut.
"If we get a storm it could be setting up the market to
make a run at $80."
Data showed sales of previously owned U.S. homes hit a
three-month low in June while new claims for jobless benefits
surged last week, the latest indications the economic recovery
remains tentative. []
Thursday's rally pushed oil prices back above two key
technical resistance points for a second consecutive day: the
200-day moving, which was $77.62 on Thursday, and a trend line
connecting several intraday peaks going back to the April 6.
(Graphic: http://link.reuters.com/cyk98m )
Oil received an early lift when European purchasing
managers' indexes showed private sector business activity
accelerated in July, surprising economists who had expected a
slowdown. []
"I think that this is a very good sign that we are not
heading for a double-dip recession," Dekabank analyst Sebastian
Wanke told Reuters Insider. (Reuters Insider interview with
Sebastian Wanke: http://link.reuters.com/ruk78m)
Investors are awaiting the results of the European Union
examination of banks, which are due on Friday and are expected
to show generally positive results for Greece, Italy and
Ireland and a few failures in Portugal and Spain.
[]
(Additional reporting by Matthew Robinson in New York; David
Turner and David Sheppard in London and Alejandro Barbajosa in
Singapore; Editing by Lisa Shumaker)
