Oil in New York rose, capping its biggest weekly gain in two months, as U.S. economic reports signaled that growth in the world’s biggest crude-consuming country will accelerate. Futures gained 6.6 percent this week, the biggest gain since Oct. 28, as durable goods rose in November by the most in four months. Initial jobless claims fell to the lowest level since April 2008 and leading indicators advanced more than forecast last month. Crude oil for February delivery rose 15 cents to $99.68 a barrel on the New York Mercantile Exchange, the highest settlement since Dec. 13. Futures have climbed 9.1 percent this year after increasing 15 percent in 2010. Meanwhile, Libya, holder of Africa’s biggest oil reserves, is now pumping “more than a million” barrels a day as the oil industry recovers from months of armed conflict. The country will resume normal oil production by the middle of next year. The North African nation was pumping about 1.6 million barrels a day in January, before the armed uprising began in February that eventually ousted leader Muammar Qaddafi. The country is seeking to raise its production to 2 million barrels a day in three-to-five years’ time. Libya is a member of both OAPEC and OPEC.The recovery in its production rate to more than 1 million barrels a day means Libyan output now exceeds that of two fellow OPEC members, Ecuador and Qatar. At least four tankers had been booked in the week through Dec. 22 to load 420,000 metric tons of crude oil in Libya. The ships have been chartered to pick up the equivalent of about 3.1 million barrels, compared with about 2.7 million barrels booked to load on four vessels the previous week.
Gold rose in London as the dollar declined against the euro, boosting the appeal of precious metals as alternative assets. Bullion has climbed 13 percent this year, on track for an 11th straight annual gain. Investors have increased purchases as concerns that global growth will slow lifted demand for the metal as a haven. Still, prices have dropped 1 percent since Sept. 30, heading for the first quarterly decline in more than three years. Gold for immediate delivery rose 60 cents to $1,606.95 an ounce. Even though there are signs of a recovery in the U.S. economy, European economic concerns still do exist and many issues require clarity and direction. There may be a relief rally in the beginning of 2012 and some risk aversion may creep in later. Gold production in China, the world’s second-largest jewelry market, gained 5 percent in the first 10 months of this year to 290.752 metric tons, according to a statement from the Ministry of Industry and Information Technology. Output in October was 31.750 tons. Gold traders seem to be equally divided in where the metal should go, with a range of $1,600-$1,650 an ounce expected as the market heads into the last week of the year next week. A close over $1,615 in the Feb Comex contract could uncover buy stops.
