* Oil rises above $69 a barrel, near seven-month high
* Eyes on U.S. jobs data at 1230 GMT
(Updates, changes dateline, pvs SINGAPORE)
By Christopher Johnson
LONDON, June 5 (Reuters) - Oil pushed up towards $70 per
barrel and new seven-month highs on Friday, buoyed by a rally in
stock markets, a weaker dollar and expectations that the global
economic downturn may not be as severe as expected.
On Thursday, U.S. crude futures gained 4 percent on hints of
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.
Financial markets awaited U.S. non-farm payroll figures at
1230 GMT to see if the data provided further evidence that the
recession was easing in the world's biggest oil consumer.
U.S. crude for July delivery <CLc1> was up 40 cents at
$69.21 per barrel by 0740 GMT after peaking at $69.52. The
market hit $69.60 a barrel on Thursday -- its highest since
early November. London Brent <LCOc1> gained 30 cents to $69.01.
"For the time being, U.S. macro data seems to be what is
driving crude prices, and not the fundamentals, which look
uninspiring at best," said MF Global in its daily energy report.
"How long this disconnect will continue is anyone's guess,
but for now, it is inadvisable to stand in the way of what seems
to be investor money clearly piling into commodities.
"Buyers are hoping that an imminent global economic
recovery, coupled with continued weakness in the dollar, will
eventually improve the currently weak fundamentals."
$85 PER BARREL
Oil prices have risen sharply from lows near $30 a barrel
this winter but are still less than half their record peak last
July at over $147 as recession has bitten deep into oil demand.
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. []
This view is shared broadly by the head of the Organization
of the Petroleum Exporting Countries Oil producing group, who
told Reuters Energy Summit this week that prices could reach
$80-$90 per barrel by early next year.
Rising stock markets are supporting expectations that the
global economy may begin to recover sooner rather than later.
Japan's Nikkei stock average rose 1 percent on Friday to an
eight-month closing high, lifted by resource and energy shares
amid a climb in commodity prices. []
European shares rose in early trade on Friday, buoyed by
mining and oil companies. []
The dollar slipped against a basket of major currencies on
Friday, with investors shifting money to higher-yielding
currencies from the safe-haven U.S. currency on views the global
recession may be easing.
The dollar index, a gauge of its performance against a
basket of six currencies, slipped 0.1 percent to 79.414 <.DXY>
by 0735 GMT.
(Additional reporting by Sambit Mohanty in Singapore; editing
by William Hardy)
