(Corrects first bullet point to $74, not $78)
* Oil extends gains, rises above $74 on economic optimism
* Hurricane Bill moves towards energy facilities in Canada
* Fed Chairman Bernanke says world economy on mend
By Fayen Wong
PERTH, Aug 24 (Reuters) - Oil rose above $74 a barrel on
Monday, trading near a 10-month high, amid increased optimism
energy demand will rebound as the U.S. economy heads for a
recovery, while a storm off eastern Canada also lent support.
Oil rose $6.38, or nearly 10 percent, last week, thanks to
a combination of positive economic data, a Wall Street rally
and a weakened U.S. dollar.
U.S. crude for October delivery <CLc1> rose 38 cents to
$74.47 a barrel by 0038 GMT. The contract settled up 98 cents
at $73.89 per barrel on Friday, the highest settlement since
Oct. 20.
London Brent crude <LCOc1> gained 38 cents to $74.57 a
barrel.
"Oil is still drawing support from the positive data on
Friday," said David Moore, an analyst at the Commonwealth Bank
of Australia. "There aren't too many economic indicators due
today that will push oil prices much higher, but any damage to
oil and gas facilities off Canada would add upside pressure."
Oil's Friday gains followed home sales data for July
showing recovery in the U.S. housing market, while Federal
Reserve Chairman Ben Bernanke also said the global economy
appeared to be recovering.
Asian stocks are set to rise on Monday, riding on the tails
of the Wall Street bounce that sent the S&P 500 index to a
10-month intraday high, amid building optimism about an
economic recovery.
On the weather front, Hurricane Bill brought rain and heavy
winds to Nova Scotia in eastern Canada on Sunday, but the
Category 1 storm caused little serious damage as it moved
northeast to the region's offshore oil and gas facilities.
[]
However, threats to energy facilities have not yet passed.
Bill, the first hurricane of the 2009 season, is now heading
towards Atlantic Canada -- an energy producing region that
exports oil, natural gas and refined products to the U.S.
Northeast and elsewhere.
Separately, analysts say renewed tensions in Nigeria could
also add further support to oil, should investors' continue
their focus on a more bullish outlook.
Nigeria's main rebel group said on Saturday it would resume
attacks against Africa's biggest energy industry next month,
overshadowing the surrender of hundreds of arms by rebels in a
federal amnesty programme. []
Investors will watch this week's new home sales and
consumer data to see if the economy's recovery is on track and
whether U.S. stocks -- now at their 2009 highs -- will extend
their rally. []
Crude oil speculators on the New York Mercantile Exchange
trimmed their net long positions in the week to Aug 18,
according to data from the Commodity Futures Trading Commission
released on Friday. []
(Reporting by Fayen Wong; Editing by Clarence Fernandez)
