* Stimulus, jobs data continue to support
* Crude slips from earlier high on profit-taking
* Coming Up: U.S. Employment index Oct; 1400 GMT
(Updates prices, adds Credit Suisse analyst comment)
By Rebekah Kebede
PERTH, Nov 8 (Reuters) - U.S. crude oil rose slightly on
Monday, trading near $87 a barrel on the U.S. Fed's decision
last week to resume buying Treasurys and stronger-than-expected
jobs data.
Momentum from positive economic data from the world's
biggest oil consumer could continue to lift oil prices going
forward, analysts said.
"There are signs of improving economic activity,
particularly from the U.S. with a much better than expected
labor market report which signals that the U.S. economy could
see some moderate re-acceleration in the weeks or months
ahead," Stefan Graber at Credit Suisse in Singapore.
U.S. crude for December delivery <CLc1> rose 9 cents to
$86.94 a barrel by 0631 GMT. ICE Brent <LCOc1> was unchanged at
$88.11.
The U.S. central bank said it would buy $75 billion in
Treasury bonds per month through mid-2011, totaling around $600
billion, to boost the nation's economy.
The news helped propel crude oil to a two-year intra-day
high of $87.43 a barrel on Friday, the highest intra-day price
since hitting $89.82 on Oct. 9, 2008, surpassing this year's
previous peak of $87.15 on May 3.
Oil futures rose to $87.49 a barrel early on Monday, but
failed to set a fresh two-year high as the market pared its
gains in a round of profit-taking, analysts said.
U.S. jobs data, which showed private firms hiring at the
fastest pace since April, also supported the notion that the
United States is on its way to recovery.
"What is really important is that the U.S. economy appears
to be back on track," said Geoff Howie, sales and market
strategist at MF Global in Singapore.
NEW RECORD?
While a new round of monetary stimulus in the U.S. is
boosting the appeal of commodities, a sluggish but sustained
economic recovery in other industrialized economies and rampant
growth in emerging Asia are also raising demand for energy and
raw materials.
Commodities continued to rise across the board on Monday
with the Reuters-Jefferies CRB index, a global commodities
benchmark, climbing above 313 points and gold touching a new
record. <.CRB>
"There certainly does seem to be some sense of urgency in
the oil market, with a growing perception that the cycle is
changing and a sense that the final debris from 2008 and 2009
is being cleared away," Barclays said in a weekly commodities
report.
Surging demand and the downward trajectory of inventories
may lead oil to trade in a broader range between $70 to $90,"
Barclays said.
"Oil, as long as it stays above this area, could be
considered a continued mover on to $90 and plus," said Jonathan
Barratt, managing director at Commodity Broking Services in
Melbourne, but added that he does not see fundamentals
supporting such a price.
Last week, OPEC's secretary general indicated that prices
of $90 a barrel would not hold back the world economy, a higher
level than previously identified as posing no risk to growth.
[]
(Editing by Ed Lane)
