* Bullish economic data lifts equities, oil
* Market shrugs off EIA data showing crude stocks rise
* Coming up: U.S. Thanksgiving holiday Thursday
(Updates with settlement prices, market activity)
By Robert Gibbons
NEW YORK, Nov 24 (Reuters) - Oil prices rose more than 3
percent on Wednesday and as data that suggested economic
recovery is improving and pre-Thanksgiving holiday short
covering helped oil post its biggest percentage gain in four
months.
U.S. initial jobless benefits claims fell to their lowest
level in more than two years last week while consumer spending
rose for a fourth straight month in October, fueling hopes the
economic recovery is strengthening. []
A separate report showed U.S. consumer sentiment rose to
its highest level since June. []
While U.S. crude inventories rose last week against
expectations they would fall, the rise in the government's
weekly inventory report was less than the jump industry
reported on Tuesday, leaving broker and analysts relieved.
U.S. crude oil for January delivery <CLc1> rose $2.61, or
3.21 percent, to settle at $83.86 a barrel, snapping a string
of three lower finishes to post the highest close since since
Nov. 15 and biggest percentage gain since July 22.
Prices rose to a $84.25 peak in post-settlement trading.
Total U.S. crude trading volume was above 460,000 lots
traded, but was 29 percent below the 30-day average and well
below the 62 7,808 lots traded last year on the Wednesday
before the Thanksgiving holiday.
In London, ICE January Brent crude <LCOc1> rose $2.59 to
settle at $85.84 a barrel.
"The complex was able to mount a sizable pre-holiday
advance with the assistance of continued favorable economic
data that easily spilled into the equity space in the process
of keeping alive the prospect of increased oil demand going
forward," Jim Ritterbusch, president at Ritterbusch &
Associates in Galena, Illinois, said in a note.
The positive economic data also sent U.S. stocks higher,
breaking a string of two lower finishes. []
Oil investors focused on the supportive economic reports
and shrugged of the stronger dollar and the euro sliding to a
two-month low amid worries that Ireland's fiscal crisis could
spread to other countries. []
Increasing investor risk-aversion had seen oil prices fall
about 8 percent since reaching a 2010 high of $88.63 on Nov.
11.
"Prices are being influenced by Ireland and euro zone debt
issues, concerns about whether China is going to over tighten
as it tries to fight inflation and last but not least the
situation between North and South Korea," Societe Generale's
global head of oil research Mike Wittner said.
"Markets are jittery and there is the Thanksgiving weekend,
so volumes will be light and prices could be volatile," he
said.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graph comparing peripheral euro zone economies
http://r.reuters.com/zem66q
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U.S. crude oil stockpiles rose 1.03 million barrels to
358.6 million barrels in the week to Nov. 19 as crude imports
jumped by more than a million barrels per day, the U.S. Energy
Information Administration said on Wednesday. []
Analysts polled by Reuters had expected crude stocks to
fall 2.1 million barrels, but the jump reported by the EIA was
much less than the American Petroleum Institute's report late
on Tuesday showing stockpiles increased 5.2 million barrels.
[]
Gasoline stocks rose 1.91 million barrels, the EIA said,
against expectations for a 600,000-barrel draw, and distillate
stocks fell 541,000 barrels, much less than compared with
analyst expectations for a larger 1.2 million-barrel draw.
"It didn't seem like the inventory data moved the market at
all," said Richard Ilczyszyn senior market strategist at
Lind-Waldock in Chicago. "This is a short cover; we have
problems in Korea and elsewhere and traders do not want to go
home short ahead of the weekend."
In the face of the less than bullish inventory data, U.S.
refined products futures also surged on Wednesday, getting a
boost from news of a Texas refinery fire also helping keep
crude oil's advance fueled.
Exxon Mobil Corp's <XOM.N> said late on Wednesday that it's
Beaumont, Texas refinery continued to operate after a small
fire in an unspecified process area of the plant that injured
one worker. []
(Additional reporting by Edward McAllister in New York, Alex
Lawler and Zaida Espana in London and Florence Tan in
Singapore; Editing by Marguerita Choy)
