US crude oil rose slightly on Monday, trading near $87 a barrel on the US Fed’s decision last week to resume buying Treasurys and stronger-than-expected jobs data. Momentum from positive economic data from the world’s biggest oil consumer could continue to lift oil prices going forward, analysts said. “There are signs of improving economic activity, particularly from the US with a much better than expected labor market report which signals that the US economy could see some moderate re-acceleration in the weeks or months ahead,” Stefan Graber at Credit Suisse in Singapore. US crude for December delivery rose 9 cents to $86,94 a barrel by 0631 GMT. ICE Brent was unchanged at $88,11. The US central bank said it would buy $75 billion in Treasury bonds per month through mid-2011, totaling around $600 billion, to boost the nation’s economy. The news helped propel crude oil to a two-year intra-day high of $87,43 a barrel on Friday, the highest intra-day price since hitting $89,82 on Oct. 9, 2008, surpassing this year’s previous peak of $87,15 on May 3. Oil futures rose to $87,49 a barrel early on Monday, but failed to set a fresh two-year high as the market pared its gains in a round of profit-taking, analysts said. US jobs data, which showed private firms hiring at the fastest pace since April, also supported the notion that the United States is on its way to recovery. “What is really important is that the US economy appears to be back on track,” said Geoff Howie, sales and market strategist at MF Global in Singapore. NEW RECORD? While a new round of monetary stimulus in the US is boosting the appeal of commodities, a sluggish but sustained economic recovery in other industrialized economies and rampant growth in emerging Asia are also raising demand for energy and raw materials. Commodities continued to rise across the board on Monday with the Reuters-Jefferies CRB index, a global commodities benchmark, climbing above 313 points and gold touching a new record. “There certainly does seem to be some sense of urgency in the oil market, with a growing perception that the cycle is changing and a sense that the final debris from 2008 and 2009 is being cleared away,” Barclays said in a weekly commodities report. Surging demand and the downward trajectory of inventories may lead oil to trade in a broader range between $70 to $90,” Barclays said. “Oil, as long as it stays above this area, could be considered a continued mover on to $90 and plus,” said Jonathan Barratt, managing director at Commodity Broking Services in Melbourne, but added that he does not see fundamentals supporting such a price. Last week, OPEC’s secretary general indicated that prices of $90 a barrel would not hold back the world economy, a higher level than previously identified as posing no risk to growth.

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