Oil prices rose to near $95 a barrel Friday, boosted by signs the U.S. economy may be improving and hopes that the cancellation of a Greek referendum clears the way for the country's financial rescue.
By early afternoon in Europe, benchmark crude for December delivery was up 68 cents at $94.75 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $94.07 in New York on Thursday.
In London, Brent crude was up 10 cents at $110.93 a barrel on the ICE Futures exchange.
Crude has jumped about 25 percent from $75 on Oct. 4 amid growing investor optimism that the U.S. economy will avoid a recession and that Europe will be able to get a grip on its debt crisis.
On Thursday, the Labor Department reported that the number of people who applied for unemployment benefits dipped slightly last week to the lowest level in five weeks. And the Commerce Department said factory orders had the biggest jump in six months in September.
"The general global economic outlook inched away from the edge of collapse," energy trader and consultant The Schork Group said in a report.
Investors will be closely watching the latest unemployment figures for October due to be released later Friday.
Crude prices also benefited from Greek Prime Minister George Papandreou's decision to abandon a referendum on approving the bailout. The vote could have threatened Europe's entire crisis-fighting efforts.
"The perceived danger of the Greek referendum seems to have been averted," said a report from JBC Energy in Vienna.
An unexpected rate cut by the European Central Bank, announced Thursday by its new head, Mario Draghi, also contributed to positive investor sentiment.
The rate cut "was interpreted by most market players as a growth enhancing factor," said analysts at Commerzbank in Frankfurt. "In view of the apparent U-turn by the ECB to a more growth-oriented monetary policy and the smaller likelihood now of a default by Greece in the near future, oil prices should remain well supported initially."
In other Nymex trading, heating oil rose 3.58 cents to $3.0739 per gallon and gasoline futures gained 2.80 cents at $2.6698 per gallon. Natural gas added 2.6 cents at $3.804 per 1,000 cubic feet.
Yahoo.news
By early afternoon in Europe, benchmark crude for December delivery was up 68 cents at $94.75 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $94.07 in New York on Thursday.
In London, Brent crude was up 10 cents at $110.93 a barrel on the ICE Futures exchange.
Crude has jumped about 25 percent from $75 on Oct. 4 amid growing investor optimism that the U.S. economy will avoid a recession and that Europe will be able to get a grip on its debt crisis.
On Thursday, the Labor Department reported that the number of people who applied for unemployment benefits dipped slightly last week to the lowest level in five weeks. And the Commerce Department said factory orders had the biggest jump in six months in September.
"The general global economic outlook inched away from the edge of collapse," energy trader and consultant The Schork Group said in a report.
Investors will be closely watching the latest unemployment figures for October due to be released later Friday.
Crude prices also benefited from Greek Prime Minister George Papandreou's decision to abandon a referendum on approving the bailout. The vote could have threatened Europe's entire crisis-fighting efforts.
"The perceived danger of the Greek referendum seems to have been averted," said a report from JBC Energy in Vienna.
An unexpected rate cut by the European Central Bank, announced Thursday by its new head, Mario Draghi, also contributed to positive investor sentiment.
The rate cut "was interpreted by most market players as a growth enhancing factor," said analysts at Commerzbank in Frankfurt. "In view of the apparent U-turn by the ECB to a more growth-oriented monetary policy and the smaller likelihood now of a default by Greece in the near future, oil prices should remain well supported initially."
In other Nymex trading, heating oil rose 3.58 cents to $3.0739 per gallon and gasoline futures gained 2.80 cents at $2.6698 per gallon. Natural gas added 2.6 cents at $3.804 per 1,000 cubic feet.
Yahoo.news
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