OIL HEADED UP TOWARD $100

Crude Oil Rises to 7-Month High as IEA Raises Demand Forecast
Mark Shenk, June11, 2009 (Bloomberg News)

"Crude oil climbed above $72 a barrel for the first time in seven months as the International Energy Agency…adviser to 28 nations, increased its global consumption outlook for the first time since August amid signs the recession is bottoming out. China boosted net oil purchases to 3.9 million barrels a day, a 14-month high, in May. Nouriel Roubini, the New York University professor who predicted the financial crisis, said crude will likely rise to $100 a barrel next year…

"Crude oil for July delivery rose…on the New York Mercantile Exchange. Futures…[were] the highest since Oct. 21. Prices are up 61 percent this year…The Paris-based IEA increased its global estimate for daily oil demand by 120,000 barrels to 83.3 million barrels in its monthly report…driven by the U.S. and China [demand]…"

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"The forecast change in demand was countered by expectations for higher output from outside the Organization of Petroleum Exporting Countries. The IEA raised its 2009 estimate for non-OPEC supply by 170,000 barrels a day from May’s report because of production growth in Russia and Colombia and improved North Sea Performance…

"U.S. oil stockpiles dropped 4.38 million barrels…[though analysts] had expected supplies to rise by 100,000 barrels. Gasoline inventories slipped for a seventh week...China’s increase in net crude-oil imports in May was second only to a record of 16.9 million tons in March. Imports rose by 5 percent…Brent crude for July delivery rose 40 cents, or 0.6 percent, to $71.20 on London’s ICE Futures Europe exchange. Futures reached $71.65, the highest since Oct. 21."