* Oil rises more than 3 percent to fresh 2009 high
* U.S. jobless claims fall unexpectedly, aiding equities
* Market eyes bank stress test results
(Updates throughout)
By Joe Brock
LONDON, May 7 (Reuters) - Oil rose above $58 a barrel on
Thursday, hitting a fresh 2009 high, as signs of economic
improvement in the United States boosted expectations of future
increases in demand for oil products.
U.S. light crude for June delivery <CLc1> rose $2.04 cents a
barrel to $58.38 by 1347 GMT, off an earlier peak of $58.57,
oil's highest level since Nov. 17, 2008.
London Brent crude <LCOc1> rose $1.88 cents to $58.03.
"I think oil is looking at the whole picture, stocks are
doing well and economic signals are starting to look a bit
better," said Rob Montefusco, a trader at Sucden Financial.
However, Montefusco said oil's rally could be short lived,
although it had gained impetus by climbing above the $55 level
identified as important by analysts.
"I think it has managed to break the $55 technical level and
it is now jumping further but I don't see any fundamental
reasons for it to go higher."
Oil has tracked a recovery in the equity markets over the
past month, with the U.S. Standard & Poor's 500 Index <.SPX> up
some 36 percent from March lows.
U.S. stock markets were firmer on Thursday, while European
equities stayed sharply higher after the European Central Bank
cut its benchmark interest rate by 0.25 percent to a new record
low of 1.0 percent. []
Labor Department data on Thursday showed the number of U.S.
workers filing new claims for jobless aid unexpectedly fell by
34,000 last week, adding to scattered indications that the
severity of the recession may be easing. []
These numbers preceded key U.S. non-farm payroll numbers due
to be released on Friday.
STRESS TEST
The market was also watching for the results of the U.S.
government stress tests on the ability of banks to weather a
deep recession, to be released at 2100 GMT. []
Expectations for rising oil demand as summer approaches were
fuelled by leaks of the test results that suggested most banks
were healthier than earlier thought.
U.S. crude inventories rose again, but by a
lower-than-expected 600,000 barrels against forecasts for a 2.2
million barrels build, while U.S. gasoline stocks fell last week
by 200,000 barrels to 212.4 million, the Energy Information
Administration said on Wednesday. []
Saudi Arabia, the world's top oil supplier, said it would
not raise supplies for the time being as it attempts to shore up
prices.
The kingdom is pumping below 8 million barrels per day (bpd)
and is unlikely to increase that production as world supply
continues to outpace demand, Saudi Aramco Chief Executive Khalid
al-Falih said on Wednesday. []
(Editing by Anthony Barker)
