Crude oil lingers near $55

NEW YORK: Crude oil rose from a 21-month low after U.S. industrial production gained, increasing expectations that fuel demand may improve in the world's largest consumer.U.S. output at factories, mines and utilities rose 1.3 percent in October, more than forecast, as refineries and oil rigs returned to service after Hurricanes Gustav and Ike, the Federal Reserve said yesterday. Industrial plants used 76.4 percent of capacity, an increase from 75.5 percent in September.``We're not getting much joy out of the U.S., although it wasn't below what the market was expecting so prices might be getting some support from that,'' said Mark Pervan, a senior commodity strategist at Australia and New Zealand Banking Group Ltd. in Melbourne. ``The industrial production numbers were better than expected but still low.''Crude oil for December delivery rose as much as 44 cents, or 0.8 percent, to $55.39 a barrel on the New York Mercantile Exchange. It was at $55.33 a barrel at 12:12 p.m. Singapore time. Prices have tumbled 63 percent since reaching a record $147.27 on July 11.Oil closed yesterday at its lowest since Jan. 29, 2007, after the economy in Japan, the world's third-biggest oil- consuming country, contracted 0.4 percent in the third quarter. China National Petroleum Corp. said yesterday demand has fallen since September because of credit-market turmoil.Prices rose earlier because of colder U.S. weather and the hijacking of a Saudi Arabian tanker. Temperatures on the East Coast will be below normal from Nov. 22 to Nov. 26, according to the National Weather Service. A supertanker was hijacked by Somali pirates off the coast of Kenya, the U.S. Navy said.The Saudi-operated Sirius Star was more than 450 nautical miles southeast of Mombasa when a group of pirates scaled the 10- meter (32-foot) side of the ship, U.S. Navy Lieutenant Nate Christensen said in a phone interview yesterday from Bahrain, where the Fifth Fleet is based. The tanker is designed to carry more than 2 million barrels of crude oil.U.S. crude-oil inventories probably rose for an eighth week as imports rebounded, a Bloomberg News survey of analysts showed.Crude oil stockpiles probably climbed 1 million barrels in the week ended Nov. 14 from 311.9 million the week before, according to the median of nine analyst estimates before an Energy Department report this week.Refineries probably operated at 84.6 percent of capacity, unchanged from the week before, the survey showed. Gasoline stockpiles probably increased 1 million barrels from 198.1 million barrels the week before, according to the survey.

News Source:http://thearynews.com/