Oil futures rise past $97 on the prospects for demand - MarketWatch

Virginia Harrison Myra P. Saefong, MarketWatch SAN FRANCISCO (MarketWatch) - crude oil futures climbed Tuesday to mark their more high end in three weeks after a brokerage raised goals for next year oil price and forecast continued strong growth in global demand.

Optimism about the US economy and the possibilities for tightening regulations inside oil also added support for oil.

/ quotes/Zigman/2075824 CL1Q 96.89, + 1.95 to 2.05 %

Crude oil for August delivery/quotes/zigman/2075824 CL1Q + 2.05% increased from $1.95, or 2.1%, to close at $96.89 US per barrel on the New York Mercantile Exchange after tapping a maximum of $97.48. Prices marked their highest closing since June 14.

For 2012, Barclays Capital raised its forecast for gross by $10 to $115 a barrel, Brent and his Nymex forecast by $4, $ 110.

Barclays said its forecasts of supply and demand of 2012 "show a continuation of robust demand from emerging markets," global demand for oil should grow by 1.38 million barrels per day and non-OECD demand increased from 1.57 million barrels per day.

The main sources of growth in demand in 2012 should be China, the India, Saudi Arabia and the Brazil, Barclays said in a research Tuesday note.

"The forecast price basically includes potential supply interruptions as a risk premium," said James Williams, an economist with the energy to WTRG Economics.

The oil market has only 3.5 million barrels per day of spare capacity at the global level, with most of it in Saudi Arabia, according to Williams. If "market concern with respect to the alternative than low ability, there is a further interruption of supply, particularly in the Middle East," he said.

And now, "you cannot be sure in any country that supplies be interrupted"right, he said."".

Barclays trimmed also 6 of the WTI 2011 estimate, $ $ 100 the barrel, "but it is only in large part an admission that the market had already priced that they had overestimated this year, said Matt Parry, KBC Energy Economics Chief Economist.

Potential "-oil humps demand" in the second half of the year have been eliminated, said Dan Morrison, Managing Director and senior analyst of exploration and production in Global Securities Hunter.

"The Greek debt crisis seems to continue to move slowly towards a free resolution of default and points of modestly positive economic news to a continued modest economic growth", he said.

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"The market is also looking at seasonal peak in January and has concerns about the availability of reserve capacity to respond to this", he said.

Wall Street before fall of U.S. Payroll futures

 Traders work on the floor of the New York Stock Exchange at the beginning of the trade session at New York, 3 January 2011.Credit: Reuters, Mike Segar

NEW YORK | 7 Jan 2011 7: 19 pm EST

NEW YORK (Reuters) - U.S. stock index future just changed Friday, investors are waiting to see if U.S. nonfarm pay figures were also solid that it seemed to indicate the previous data.

* Economists expect government because payroll data at 8: 30 a.m. EST, show the US economy created 175 000 new jobs in December, the highest level since May.

* Some economists revised their forecasts higher after surprising ADP private sector figures of employment on Wednesday were triple forecasts.

* Overbought levels on the S & P 500.SPX has opened the door to the possibility of declines so disappointed of payroll. Technical support in the short term for the point of reference was found near 1,260, its moving average of 14 days. S & P closed Thursday at 1,273.85.

OSFI posts data will come after a 7.9% rise in the S & P 500 at the beginning of December, to this day.

* S & P 500 0.1 point toughened futures and fair value, a formula that evaluates prices taking into account the rate of interest, dividends and the time of expiry of the contract, has not changed. Dow Jones industrial average future increased by 7 points and Nasdaq 100 Futures fell to 4 points.

* Facing a Republican newly empowered skeptical of the Federal Reserve in its attempt to stimulate the U.S. economy, Chairman Ben Bernanke may turn off some optimism of Wall Street as it delivers testimony to Congress at 9: 30 pm EST.

* The Pentagon changed Lockheed Martin Corp. (LMT).(N) project fighter F-35 for the second time in a year and buy 41 Boeing Co (BA).(N) F/A-18 aircraft in the next three years to offset slower Lockheed production.

Treasury aging-out insurer American International Group, Inc. (AIG).(N) has approved a dividend which assumes that its recapitalization plan will close as soon as next week.

* Sara Lee Corp (SLE).(N) is considering spinning off the coast of its meat and coffee companies having rejected a takeover bid from the JBS Brazil his (JBSS3.)(SA), a source said.

* U.S. stocks were most Thursday lower than soft retail sales and a surge in the dollar sent the two manufacturers of Dow.DJI and S & P 500 down 0.2%. But Composite Nasdaq.IXIC increased by 0.3%.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)