* Oil surges by more than $1 on bullish economy, stocks
* Germany and France report unexpected GDP rises for Q2
* Japan's Nikkei at new 10-month high
By Maryelle Demongeot
SINGAPORE, Aug 14 (Reuters) - Oil jumped by more than $1 on
Friday to extend gains above $71 a barrel, in line with rising
equity markets as economies worldwide appeared to be on the
path to recovery.
Hopes that the worst of the recession was over helped oil
rise for the third day in a row, leaving prices headed to end
the week slightly higher than a week ago.
Optimism infected all markets, with Japan's Nikkei average
<> hitting its highest in 10 months to end the morning
session up 1.05 percent, as investor confidence was further
reinforced after Europe's biggest economies, Germany and
France, ended their recessions in April-June, earlier than
expected.
U.S. light crude for September delivery <CLc1> was up 43
cents at $70.95 a barrel by 0306 GMT, having earlier risen by
as much as $1.08 to $71.60, adding to a 36-cent gain on
Thursday.
London Brent crude <LCOc1> rose 47 cents to $73.95.
"There is mounting evidence that the recession is over and
that a phase of rapid growth in OECD industrial metals and
energy demand is imminent," Barclays Capital analysts said in a
commodities research report.
Oil has more than doubled from the low $30s of this winter,
supported by hopes that recovery from the deepest financial
crisis in decades was at hand that triggered an equity rally.
News that the eurozone's two largest economies were heading
out of recession comforted hopes, coming a day after the U.S.
Federal Reserve made its clearest statement yet that it sees
the recession nearing an end. []
Oil demand may be close to rebounding, too.
"Beyond the macroeconomic optimism, oil fundamentals have
also brightened, with refinery margins globally lifting over
the past three weeks amid impoved light product cracks," said
J.P. Morgan analysts in their weekly oil markets report.
Potentially further tightening supplies in the United
States, the National Hurricane Center said on Thursday that the
Atlantic may get its first named storm of the year as a
tropical wave off of West Africa gains strength.
[]
Tropical storms and hurricanes can disrupt operations at
offshore platforms and coastal refineries.
But not all data signalled a rebound.
U.S. data on Thursday showed nationwide retail sales dipped
slightly in July and the number of U.S. workers filing new
claims for jobless benefits rose unexpectedly last week,
capping the bullish mood. [] []
U.S. crude and products inventories also remain at high
levels, with crude stocks unexpectedly rising last week
according to the U.S. Energy Information Administration, while
gasoline inventories fell by less than expected. []
(Editing by Clarence Fernandez)
