(Clarifies in second paragraph that Brent had risen to $127)
* U.S. consumer confidence up, NY manufacturing rose
* China's first quarter growth outpaces expectations
* Coming Up: US CFTC commitment of traders report 1930 GMT
* Goldman says pare commodities short-term
(Updates prices, adds details on volume, CFTC report,
paragraphs 5, 8, 9)
By Joshua Schneyer and Matthew Robinson
NEW YORK, April 15 (Reuters) - Oil rose on Friday, with
Brent crude surging past $123 a barrel, as improving U.S.
consumer confidence and industrial production eased concerns
about rising fuel costs.
Concerns about the impact of rising fuel costs on the
economic recovery and consumption hit prices earlier in the
week, knocking Brent off 32-month highs. It had risen to $127 a
barrel on expectations the conflict in Libya would lead to a
prolonged disruption of the OPEC nation's supplies.
A U.S. government report showed underlying inflation
pressures remained contained in March, while a survey showed
April consumer sentiment rose more than expected. Investors
have been concerned higher energy and food costs would slow
consumer spending. [] []
A gauge of manufacturing in economic powerhouse New York
State rose in April to the highest level in a year and
employment improved, the New York Federal Reserve said Friday.
[]
U.S. crude futures <CLc1> rose $1.55 to settle at $109.66 a
barrel, marking the third straight day of gains although the
contract was off 2.8 percent for the week. ICE Brent crude
<LCOc1> for June, the new front-month contract, rose $1.45 to
settle at $123.45 a barrel.
"Consumer confidence and supportive Empire State
manufacturing data helped turn the market more positive and
China's growth, while slightly slower, is still chugging
along," said Gene McGillian, analyst at Tradition Energy in
Stamford, Connecticut.
China's gross domestic product grew by 9.7 percent in the
first quarter from a year earlier, off the 9.8 percent growth
rate in the last quarter of 2010 but ahead of the 9.5 percent
pace that analysts had expected. []
Volumes were light, with about 267,000 lots of Brent traded
by late afternoon, 43 percent below the 30-day average. U.S.
crude trade was down about 22 percent from the 30-day average
at 528,000 lots, although overall activity for the week was
stronger than in recent weeks.
In the week to April 12, money managers cut their net long
positions in crude futures and options by 23,718 positions in
the week as prices fell, according to the Commodity Futures
Trading Commission. []
GOLDMAN
Investors appeared to brush off the latest Goldman Sachs
recommendation to prune commodities portfolios, after a note
earlier in the week from the bank warning of a correction in
commodities markets sent oil lower.
U.S. bank Goldman Sachs on Friday recommended investors go
underweight commodities for three to six months, after the
sharp price rises so far this year. []
Oil prices have "pushed ahead" of supply and demand
fundamentals and near-term downside risk has risen after prices
climbed to "exceptionally high levels," Goldman told clients in
the latest note, while it maintained its outlook for rising oil
prices over a longer, 12-month horizon, on growing global fuel
demand.
Brent prices have rallied from around $94 at the start of
year due to the unrest in Libya and the Middle East, and
concerns that it could spread to larger oil producers such as
Saudi Arabia.
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Stories on Middle East unrest: []
[]
Factbox on oil prices:
[]
Libya Graphics
http://link.reuters.com/neg68r
Interactive graphic
http://link.reuters.com/puk87r
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(Reporting by Joshua Schneyer, Robert Gibbons and Matthew
Robinson in New York; Christopher Johnson in London: Florence
Tan in Singapore; Editing by David Gregorio)
