Oil rises above $69, buoyed by US jobs data

U.S. crude futures rose above $69 a barrel on Friday, but traded below seven-month highs hit in the previous session, drawing strength from positive U.S.

jobs data, a rally in stock markets and a weaker dollar.

The oil market added to gains of 4 percent in the previous session on rising hopes for a recovery in oil demand following data showing the number of U.S. workers filing new claims for jobless benefits fell for a third straight week.

''The market is pricing in improved macroeconomic conditions,'' said Yingxi Yu, an analyst at Barclays Capital in Singapore.

U.S. crude for July delivery was trading 63 cents higher at $69.44 a barrel by 0524 GMT after peaking at $69.52.

The market hit $69.60 a barrel a day earlier -- its highest level since early November. London Brent gained 51 cents to $69.22.

But the market is still trading 53 percent below the record high of more than $147 it hit in mid-July last year.

U.S. investment bank Goldman Sachs said on Thursday a potential economic rebound alongside production cuts by the OPEC cartel could propel crude to $85 a barrel by the end of the year and to $95 a barrel by the end of 2010. [ID:nL4422610] OPEC seaborne oil exports, excluding Angola and Ecuador, will rise 250,000 barrels per day (bpd) in the four weeks to June 20, said an analyst who tracks future shipments.

[ID:nWLA5900] Supply unease may also be fed by news that Venezuela is readying to nationalise petrochemical projects as it steps up a drive to put key industries in state hands.

Some analysts cautioned, however, that a staggering rebound in oil prices from lows near $30 a barrel this winter might be overdone, given continued soft demand and high stockpiles.

''The view is demand is not falling through a hole and OPEC will be able to defend prices on the downside. Therefore price are moving towards the floor explicitly stated by OPEC,'' Yu said.

''The Goldilocks range is $70-80 -- enough to encourage investment in new supply but not high enough to impact consuming countries too hard.'' The U.S. dollar inched down against a basket of major currencies on Friday, with investors shifting money to higher-yielding currencies from the safe-haven dollar on views the global recession is easing.

The dollar index, a gauge of the greenback's performance against a basket of six currencies, slipped 0.1 percent to 79.390 <.DXY>.

''Risk aversion moves are inevitable if something happens to dampen hopes, as people have been taking more risks recently,'' said Minoru Shioiri, a senior manager of FX trading at Mitsubishi UFJ Securities, referring to the dives in the dollar.

''But an overreaction in the market is also unlikely as players are not taking as risky positions as they did a year ago.'' REUTERS SG KP1220

Russia not to join OPEC

Russia will not join the Organisation of Petroleum Exporting Countries (OPEC) any time soon, CEO of Russia's leading independent oil producer said.

''Russia will not be a OPEC member in the near future,'' Vagit Alekperov, CEO of LUKoil, Russia's leading independent oil producer said yesterday on the sidelines of the International Economic Forum in St Petersburg.

Russia, the largest non-OPEC oil producer and the 12-nation cartel have differed recently over measures to steady prices during the current economic recession.

It has benefited from OPEC members' cuts in oil exports, but has not joined the group in reducing output.

''Prices are growing, thanks to OPEC efforts, we are happy,'' RIA Novosti quoted Alekperov as saying.

Russia has been invited to join the cartel, which accounts for 40 per cent of the world's output, but Moscow says it first wants to have a permanent envoy to the organisation and to sign a cooperation memorandum with OPEC.

In January, however, President Dmitry Medvedev refused to rule out that Russia could join the organisation.

Russian officials have attended OPEC gatherings, while producers, including LUKoil, have signaled they might be willing to cut output.

OPEC oil price rises above $56

Optimism about the US economy has increased the price of oil produced by the Organisation of the Petroleum Exporting Countries (OPEC), pushing it up by nearly $2 to $56.05 a barrel, the group announced Friday.

One barrel (158 litres) of OPEC crude oil rose by $1.96 Thursday, the Vienna-based group announced Friday, after having reached a six-month high already at mid-week.

"It's mainly the optimism," said Eugen Weinberg, chief commodity analyst at Commerzbank in Frankfurt. US petrol stocks were lower and there was an expectation that consumers would start to buy more fuel, he said.

Another factor was this week's news that US job losses had slowed down in April, as well as a review of the country's banks which showed that capital shortages were lower than expected.

In addition, there were tentative signs that economic activity in India and China was accelerating, Vienna-based analysts JBC Energy said.

OPEC calculates an average price based on 12 brands produced by its member states.

OPEC crude price passes $136 mark

The price for crude oil produced by the Organization of the Petroleum Exporting Countries (OPEC) continued to climb to a new record level above $136, figures released by OPEC Tuesday showed.
One barrel (159 litres) of OPEC-produced crude stood at $136.03 Monday, $0.72 higher compared with $135.31 dollars the previous day.
Oil production in OPEC countries rose to 32.57 barrels per day in June, Vienna-based analysts JBC estimated.
This increase of 230,000 barrels from May was partly due to higher output in Saudi Arabia, which pumped 200,000 barrels more in June than in the previous month.

OPEC calculates an average basket price based on 13 important brands produced by cartel members.