Oil hovers close to $88 in Asia amid economic optimism (AP)

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KUALA LUMPUR, Malaysia - oil prices hovered near $88 a barrel Tuesday in Asia, with losses tempered by hopes of strong growth in demand for crude and Europe's progress in containing its debt crisis.

Benchmark oil for January delivery was down 35 cents to $87.60 a barrel at late afternoon Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract rose $1.25 to settle at $88 a barrel on Thursday, just shy of the of $88.29 2010 high.

Signs the U.S. economy is gaining strength have spurred a rally on Wall Street this week, and that in turn drove oil prices up. U.S. manufacturing activity, retail sales and the housing market all improved. And while more Americans applied for unemployment benefits last week, the average over the past month fell to a two-year low.

Strong manufacturing data from China, a major crude importer, so lifted sentiment and turned attention away from European debt problems to the underlying strength of global oil demand, Barclays Capital said in a report.

"The momentum in global economic growth remains strong," it said. "Overall, the latest U.S. data remain consistent with our view of continued steady demand increases ahead."

Europe's progress on containing its debt crisis added to the optimism. The European Central Bank calmed markets after saying it would extend the availability of emergency loans and offer credit at a super low rate through the first half of next year.

The European Union agreed on bailout loans for Ireland last weekend, the second country after Greece following soaring budget deficits. There are fears Portugal and Spain may have to follow suit.

Analysts said the crude market will take cues from monthly U.S. unemployment figures later Friday.

Knight Bush and Associates foresaw rosy prospects for crude. It predicted prices could drift before hitting $90.50 a barrel in the near term. Goldman Sachs was even more sanguine, forecasting crude prices to hit on average $100 a barrel in 2011 and $110 in 2012.

In other NYMEX trading in January contracts, heating oil fell 1 cent to $2.45 a gallon while gasoline shed 1 cent to $2.35. Natural gas fell 1.1 cents to $4.33 per 1,000 cubic feet

In London, Brent crude fell to 18 cents $90.51 a barrel on the ICE futures exchange.

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Oil prices advance to positive economic data (AP)

Oil prices rose Wednesday amid positive economic reports in China and the United States and hopes that a plan is in the works of Europe's debt problems.

Benchmark oil for January delivery gained $2.64 or 3.1 per cent to settle at $86.75 a barrel on the New York Mercantile Exchange. Gasoline jumped 5 percent, while other energy products solid profits on the date posted.

Added at the gas pump the national average price for a gallon of unleaded gasoline regular a penny overnight to $2.864, loud AAA, Wright Express and oil price information service. That's less than a week ago but almost 24 cents more than it was a half cents a year ago.

Oil traders seemed optimistic about the global economy after sifting through a series of reports that showed improved increased production activity in the United States and China, setting small U.S. businesses and higher U.S. labour productivity than first thought in the third quarter.

At the same time European Central Bank Jean Claude Trichet President suggested that the Bank could buy bonds of warring countries within the European Union. Grow weaker dollar against other currencies has caused. As raw materials in dollars are listed, a weaker dollar makes you more attractive to buyers with foreign currencies.

"The market seems kind of"at the moment"mode of economic perception are reflected" tradition energy analyst gene McGillian said.

Oil has over $81 a barrel between trade was close to $86 per barrel last week. It started climbing overnight the status-affiliated China Federation of logistics and purchasing, said his purchasing manager index grew 55.2 last month by 54.7 in October.

The survey took note, keep rising prices for products and materials used in the production of a concern after a 25-month high in October inflation hit. China, a large importer of oil and other commodities, has to keep a lid on rising prices and managing growth affected oil prices started recently.

The manufacturing activity "makes it likely that China will tighten their lending policies, but we knew that those measures were expected to soon" Cameron Hannover energy consulting said in a research note.

In the United States said it factory output for the 16th for supply management month in November, rose but at slightly slower than in the previous month. ADP Employer Services stated employment in private enterprises of 93.000 in November jumped added as a small business the greatest amount of workers in three years. And the Ministry of labour said productivity grew more strongly than expected in the third quarter.

Meanwhile, said the Department of energy 26 rose from commercial crude oil inventories to 1.1 million barrels to 359.7 million barrels for the week of November. Gasoline increased inventories of 600,000 barrels 210.2 million barrels while demand slipped 0.5 percentage point. Stocks of distillate fuel, including diesel and fuel oil, fell by 200,000 barrels on 158.1 million barrels.

Other energy trading, increased production at some refineries to cut petrol prices as maintenance. PFGBest analyst said Phil Flynn concerned dealers were the gasoline, deliveries cause would be narrower than expected.

In other NYMEX trading in January contracts, petrol added to settle 11.36 cents to $2.3004 rose a gallon fuel oil 8.12 cents on $2.4506 per gallon and gas 8.9 cents to 4.269 won $ per 1,000 cubic feet.

Settled in London Brent crude oil to $3,42 on $88,87 a barrel on the ICE Futures Exchange.

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