crude climbs to a 3-week high above $59 *****
Crude climbs to a 3-week high above $59 Natural gas at over one-month high on demand bets
By Myra P. Saefong, MarketWatch Last Update: 10:48 AM ET Dec. 2, 2005
SAN FRANCISCO (MarketWatch) -- Crude futures climbed to a three-week high above $59 a barrel Friday and natural-gas prices traded at their highest level in over a month as cold-weather forecasts in the U.S. and upbeat economic figures fueled expectations of strong energy consumption.
January crude was last at $58.80 a barrel, up 33 cents on the New York Mercantile Exchange after trading at $59.20, its highest level since Nov. 9.
January heating oil tacked on 1.38 cents to trade at $1.7525 a gallon, and January unleaded gasoline stood at $1.578 a gallon, up 1.54 cents.
Natural gas for January delivery climbed to $13.23 per million British thermal units Friday, its loftiest level since Oct 28. It last traded up 11.3 cents at $13.14.
Forecasts predict colder weather in most of the U.S. over the next few days. "Much colder air will invade the South in the coming week as most of the country will be downright cold - even for December standards," according to Weather.com.
And the employment numbers released Friday add "to a string of positive economic reports this week, which can only intensify demand expectations," said Michael Fitzpatrick, an analyst at Fimat USA.
U.S. job growth recovered in November, with nonfarm payrolls rising by 215,000, the best growth since July, the Labor Department said Friday. See full story.
Adding support to energy prices, were the latest comments from the Organization of Petroleum Exporting Countries.
"Venezuela and Nigeria are both suggesting that OPEC should be prepared to defend against lower prices," said Fitzpatrick, with Nigeria suggesting that OPEC should not tolerate prices below $50 and Venezuela suggesting that OPEC needed to be on guard against rising U.S. production.
"The easy conclusion then, is that the push is on to tighten up supply and that push is coming right into a period in which oil demand is naturally rising," he said.
U.S. natural-gas stocks fell by 49 billion cubic feet for the week ended Nov. 25, the Energy Department reported Thursday. That marked the first significant decline of the season. See full story.
On Wednesday, the Energy Department said crude and gasoline inventories fell last week, but distillate supplies, which include heating oil, climbed. See full story.
In equities, energy shares were little changed Friday, with the Amex Oil Index ($XOI: amex oil index News, chart, profile Last: 999.77-5.53-0.55%
10:48am 12/02/2005
Add to portfolio Analyst Create alertInsider Discuss FinancialsMore $XOI$XOI999.77, -5.53, -0.6%) gaining only modest ground.
Elsewhere, December gold futures edged lower, but held their ground above the $500-an-ounce mark as copper prices headed higher for a sixth session in a row. See Metals Stocks. See related Commodities Corner.
Taking a broad measure of the commodity-futures markets, the Reuters/Jefferies CRB Index stood at 321.3 points, up 2% on the New York Board of Trade.
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