* China's implied oil demand rises
* Euro zone industrial orders rebound
* Nigeria's main rebel group threatens new attacks
(Recasts, updates prices with settlements)
By Richard Valdmanis
PORTLAND, Maine, Aug 24 (Reuters) - Oil prices gained on
Monday, briefly touching a 10-month high near $75 a barrel on
expectations an economic recovery would revive ailing world
energy demand.
U.S. crude <CLc1> rose 48 cents to settle at $74.37 a
barrel after peaking at $74.81, the highest intraday price
since Oct. 21. Brent crude <LCOc1> gained 7 cents to $74.26.
The gains came alongside strength on Wall Street, where the
stock market also briefly touched 10-month highs before pulling
back slightly after a four-day rally. []
"The stock market's rise is driving crude oil futures
higher, with the outlook controlled by economic optimism," said
Phil Flynn, analyst at PFGBest Research in Chicago.
Commodities markets have tracked stocks indexes closely in
recent months as dealers view equities as a lead indicator of
economic performance.
Oil dealers said many investors were also using commodities
as a hedge against the dollar, particularly oil as OPEC
producers work to restrain supply.
"Oil continues to ride a wave that is propelled by a fear
of rising inflation and currency devaluation, OPEC members'
unusually high level of compliance with production constraints,
and a high level of oil importation into China," Mike
Fitzpatrick, vice president at MF Global, said in a note.
A report Monday showed implied oil demand in China, the
world's No. 2 energy consumer, rose in July for the fourth
consecutive month as refiners ramped up activity.
[]
Feeding hopes the recession was waning, reports on Monday
showed new industrial orders in the euro zone rebounded in June
and U.S. economic activity improved again in July.
[] []
A string of positive economic data from various countries
and rallying stock markets helped lift oil prices by 9.5
percent last week. Crude is up around 65 percent in 2009 and
may head higher still, according to analysts.
"We could now easily move towards the $80 mark, if the
growing enthusiasm about the budding economic recovery
continues to dominate sentiment," said Edward Meir, oil analyst
at MF Global.
Renewed tensions in Nigeria could also add support to oil
prices. 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 program. []
Oil analysts expect U.S. petroleum inventory data this week
to show small declines in crude oil and gasoline supplies and a
build in distillates inventories, according to a Reuters poll.
[]
(Additional reporting by Alex Lawler in London and Fayen Wwong
in Perth; Editing by David Gregorio)
