* Saudi Arabia says consumers looking for $70 to $90 oil
* Dollar weakens, nears 15-year low against yen
* China manufacturing growth beats forecasts
* Parcel explodes in Athens, police detonate two more
(Updates throughout with detail, comment)
By Alex Lawler
LONDON, Nov 1 (Reuters) - Oil jumped almost 3 percent
towards $84 a barrel on Monday after Saudi Arabia's oil minister
said consumers were looking for prices between $70 and $90, a
higher range than previously targeted.
Ali al-Naimi said on Monday the oil price was "very decent"
for producer nations and consumers and that consumers were
looking for a market between $70 and $90. []
"Consumers are looking for oil prices around $70, but
hopefully less than $90," Naimi said in comments following a
speech in Singapore.
U.S. crude for December <CLc1> rose $2.12 to $83.55 a barrel
by 1418 GMT. ICE Brent <LCOc1> was up $1.95 at $85.10.
"Prices have jumped sharply in the last 30 minutes. Naimi's
comment is probably the most convincing reason," said Carsten
Fritsch, analyst at Commerzbank in Frankfurt.
"It gives assurance that the Saudis won't do anything to
prevent a further rise above $80," he added. "At least until
prices exceed $90."
Naimi said last month that oil prices between $70 and $80
were ideal. Saudi Arabia, OPEC's largest producer and its most
influential member, has been praising that price range for more
than a year.
When oil prices were racing towards their all-time high of
nearly $150 a barrel in July 2008, Saudi Arabia assured the
market it would produce more oil if demand justified it.
This rally is more modest and Naimi said there was no cause
for alarm.
"VERY COMFORTABLE ZONE"
"We're in a very comfortable zone. I believe this zone
should continue for some time. I would not predict for how
long," Naimi said.
"We are in a very decent environment right now for price. If
I can be audacious, I would say producers, consumers and
companies are all happy with this price."
Oil has traded mostly between $70 and $80 in the past year.
Crude oil had earlier gained a lift from expectations the
U.S. Federal Reserve would commit to a new round of monetary
stimulus this week, which weighed on the dollar, and from strong
Chinese manufacturing data.
The Fed is widely expected to announce new bond purchases,
known as quantitative easing, to pump more money into the U.S.
economy, the world's largest oil consumer, when its two-day
meeting ends on Wednesday.
Some economists expect the Fed to buy between $80 billion
and $100 billion worth of assets per month. Estimates for how
much it will eventually spend vary widely, from $250 billion to
as high as $2 trillion. []
Traders said prices also drew support after a parcel
exploded at a courier company in Athens. []
Two air packages containing bombs -- both sent from Yemen
and addressed to synagogues in Chicago -- were intercepted in
Britain and Dubai on Friday.
The dollar fell against a basket of currencies on Monday,
slipping back towards a 15-year low versus the yen. <.DXY> A
weaker dollar can boost the appeal of commodities as an
investment.
Oil also rose following unexpectedly strong manufacturing
data from China, the world's second-largest oil consumer, which
also gave a lift to shares in Europe and Asia.
Two surveys of the manufacturing sector, which are designed
to provide an early indication of conditions in a broad range of
industries, both jumped to six-month highs in October.
[]
Much of the growth in global oil demand this year is coming
from China and other emerging economies, offsetting largely
stagnant consumption in Europe and the United States.
(Writing by Christopher Johnson; editing by Sue Thomas)
