Oil maybe? $74!
supported by US demand By Randy Fabi
Mon Jul 3, 7:41 AM ET
LONDON (Reuters) - Oil rose near $74 a barrel on Monday as American drivers took to the road in large numbers, and as optimism over U.S. economic growth increased.
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London Brent crude traded 36 cents higher at $73.87 a barrel by 1115 GMT, after touching a high of $73.99 a barrel earlier in the session.
The market in U.S. light crude was closed for a holiday. It gained 41 cents to $73.93 on Friday after an eight-day rally.
Drivers are expected to shrug off high pump prices and travel in unprecedented numbers during the U.S. Independence Day period, after the U.S. economy grew in the first quarter at the fastest rate in 2-1/2 years.
"Bullish data on the refined product side has supported the latest mini-bull run in the oil price," said investment bank Citigroup in a research note.
Prices are less than two dollars away from Brent's record peak of $74.97 reached in early May, and U.S. crude's $75.35 in late April.
Analysts do not expect any big price movements until trading on the New York Mercantile Exchange (NYMEX) resumes on Wednesday.
"Prices won't move much until the U.S. market opens after the holiday, when we will see an upward momentum," said Keith Sano, manager for Sumitomo Corp.'s commodities business.
IRAQI EXPORTS
Saudi Arabia's top oil body on Sunday blamed a refinery crunch for high oil prices and said there were enough crude supplies to meet demand.
"The council realizes that the current rise in oil prices stems from various factors such as the lack of advanced refining capacity, and is not the result of any shortage in crude supply," said Saudi's High Council for Oil and Mineral Affairs.
Tensions in Iraq, Iran and Nigeria have been among the main drivers behind a near 25 percent rally in Brent prices this year.
But Iraq's oil industry had some good news on Monday after months of facing a bleak prospect for the revival of the battered sector.
Oil exports in July could match a post-war high of 1.8 million barrels per day if Baghdad can keep crude flowing from northern oilfields to the Ceyhan terminal on Turkey's Mediterranean coast, an industry source told Reuters.
Tankers have been loading again at Ceyhan after repairs to the pipeline, crippled by repeated insurgent attacks, and Iraqi exports in June were at their highest since October 2004.
Iraq has had to rely on a southern export route via Basra on the Gulf to supply markets with crude and earn vital revenue for reconstruction.
(Additional reporting by Ikuko Kao in Tokyo)
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