Commodities: Bullish EIA outlook takes oil above $74

Date: Thursday 11 Feb 2010

Crude oil futures finished Wednesday’s session higher ahead of a meeting between EU leaders on Thursday to discuss the euro zone’s debt problems and a potential rescue package for Greece.

Oil demand was also boosted by the Energy Information Administration which said expects crude prices to rise in 2010 and 2011.

Crude oil for March delivery rose 77 cents to settle at $74.52 a barrel, adding to the previous session’s 3% rise.

"The world oil market should gradually tighten in 2010 and 2011, as the global economic recovery continues and world oil demand begins to grow again," the EIA said.

Otherwise weekly stockpile data from the EIA, usually due out Wednesday, has been delayed till Friday, after a snow storm forced government offices to close.

Among precious metals US gold futures ended lower on Wednesday after Federal Reserve Chairman Ben Bernanke's comments about winding down stimulus and possible interest rate hike.

The comments boosted the dollar and took gold for April delivery 90 cents lower at $1,076.30 an ounce in New York. The weaker euro and uncertainty about the outcome of Thursday’s EU summit on a Greece bailout also weighed on gold prices.

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