Crude futures climbed above $82 a barrel overseas trading on Monday, extending last week’s gains on hopes of a swift recovery in the global economy. The dollar slipped as Friday’s above-forecast U.S. jobs data and easing concerns over Greek debt lifted investor demand for risk. Gold also gained, while European stocks were lower mid-morning. We’re seeing some recovery in risk appetite. The Greek economic crisis appears to be being easing. French President Nicolas Sarkozy promised Greece on Sunday that euro zone countries would help it overcome its financial problems and vowed a crackdown on speculators who Athens blames for its woes.
Prices last week also found support after Chinese Premier Wen Jiabao said in his report to the Chinese legislature that he would maintain an 8% growth rate for the economy this year. The positive economic outlook raised prospects for oil demand. Looking ahead, crude prices may want to challenge the January high of $83.95, with support coming from the investment side of the market. If the spot-month crude contract takes out the January high, the seasonal index would indicate an extended rally to near $100 through this summer. Oil was further supported on Monday from news that China will build two strategic oil reserve bases — a development likely to underpin demand in the world’s second-largest consumer. With global demand expected to revive in 2010, the Organization of the Petroleum Exporting Countries looks set to keep its production target unchanged when it meets on March 17, as it has for more than a year.
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