SINGAPORE, Oct 14 (Reuters) - Oil rose for a second day on
Thursday, approaching five-month highs, dragged higher by a
broad-based rally in commodities as investors dump the dollar
in a flight to value-preserving assets.
U.S. crude for November <CLc1> climbed 72 cents to $83.73 a
barrel at 0103 GMT, approaching last week's five-month high of
$84.43, while ICE Brent added 55 cents to $85.19.
Improving fundamentals in the oil market, including falling
inventories in the U.S., rebounding OECD demand and soaring
imports in China, are helping traders jump on the crude
bandwagon, as expectations mount that the U.S. Federal Reserve
will carry out a new round of expansionary monetary policy.
And the Organization of the Petroleum Exporting Countries
(OPEC), which meets in Vienna on Thursday, is not planning to
increase output to maintain prices within its preferred range
of $70-$80 a barrel. []
Instead, it is expected to leave production targets
unchanged and call for greater compliance with December 2008
output cuts.
FUNDAMENTALS
* U.S. crude inventories fell unexpectedly last week,
partly because of the closure of the Houston Ship Channel,
shedding 4 million barrels compared to an expected increase of
1.1 million, the American Petroleum Institute (API) said on
Wednesday.
* Gasoline and distillate stocks, including heating oil and
diesel, also fell by 1.9 million barrels and 254,000 barrels,
respectively, compared to forecasts from a Reuters survey for
drops of 1 million and 1.1 million barrels. []
* Government statistics on U.S. stocks and demand from the
Energy Information Administration follow on Thursday at 1500
GMT.
* Some OPEC members are eyeing prices higher than the
preferred range voiced by Saudi Arabian oil minister Ali
al-Naimi. "We are looking to have next year an increase to
between $90-$100 a barrel...to have a comfortable economy,"
Venezuelan Energy and Mines Minister Rafael Ramirez told
reporters in Vienna on Wednesday. []
* Global oil demand growth is expected to accelerate for
the rest of this year, but is revised lower for 2011 and could
slow if the world economy disappoints, the International Energy
Agency (IEA) said on Wednesday. []
* China imported a record amount of crude oil in September,
a third more than a year earlier, as demand in the world's
fastest growing oil market appeared to maintain a dizzying
pace, sparking talk it is building stocks. []
MARKETS NEWS
* The dollar index against a basket of currencies
<=USD><.DXY> fell to its lowest in nine months on Thursday, in
a move one trader said might be spillover from Singapore
central bank's action to tighten policy. The euro rose to an
eight-month high. []
* The U.S. dollar had slipped against most currencies on
Wednesday after Federal Reserve meeting minutes released the
previous day reinforced expectations of more monetary easing in
the United States. []
* World stocks jumped to a six-month high on Wednesday and
gold jumped to a new record on Thursday, while copper hit a
fresh 27-month high. []
DATA/EVENTS
* The following data is expected on Thursday:
- 0300 Japan PAJ weekly oil inventory data Oct 9
[] - 1230 U.S. Producer prices mm Sep <USPPI=ECI>
- 1230 U.S. Current account Aug <USCURA=ECI>
- 1230 U.S. Initial jobless claims Weekly <USJOB=ECI>
- 1500 U.S. EIA weekly oil stocks to Oct 8
- OPEC 157th ordinary OPEC meeting
RELATED NEWS
* French workers protesting against pension reform halted
supplies from most of the country's oil refineries on Wednesday
and were also blocking some fuel depots as the risk grew of
shortages at petrol pumps. []
* Only two of France's 12 oil refineries were operating
normally, with eight in the process of shutting down, unions
said, following blockages at plants due to a 17-day old strike
at the country's top oil port that has cut crude supply.
(Reporting by Alejandro Barbajosa; Editing by Manash Goswami)
