Oil traded above $88 a barrel in CFDs Accounts

Oil traded above $88 a barrel in CFDs Accounts after a decline in U.S. jobless claims bolstered speculation the economic recovery may boost fuel demand in the world’s biggest crude-consuming nation.

Futures rose as much as 1.1 percent yesterday after the Labor Department said applications for unemployment benefits dropped 17,000 to 421,000.

Economists forecast claims would fall to 425,000, according to a Bloomberg News survey. Prices climbing to $100 may indicate “something wrong with fundamentals” in the market and lead OPEC to act, said Abdalla El-Badri, the organization’s secretary-general.

Oil traded above $88 a barrel in New York after a decline in U.S. jobless claims bolstered speculation the economic recovery may boost fuel demand in the world’s biggest crude-consuming nation.

Futures rose as much as 1.1 percent yesterday after the Labor Department said applications for unemployment benefits dropped 17,000 to 421,000. Economists forecast claims would fall to 425,000, according to a Bloomberg News survey. Prices climbing to $100 may indicate “something wrong with fundamentals” in the market and lead OPEC to act, said Abdalla El-Badri, the organization’s secretary-general.

China’s November oil imports rebounded to 20.91 million metric tons, or about 5.1 million barrels a day, from October’s 16.4 million, according to preliminary data today from the General Administration of Customs in Beijing. Refiners in the world’s second-largest oil-consuming nation have been ramping up fuel production to meet a shortfall in diesel supplies.

Diesel stockpiles have fallen for seven straight months through October and are now at about 6.2 million tons from 11.5 million in February, according to data from Xinhua News Agency.