Oil prices rise on expectations for increased demand

PanARMENIAN.Net - The price of oil edged up Friday, Jan 24, for a fifth day in a row on expectations for increased demand, the Associated Press reports.

Benchmark U.S. crude for March delivery was up 22 cents to $97.54 a barrel at 0620 GMT in electronic trading on the U.S. Mercantile Exchange. Oil rose 59 cents to $97.32 on Thursday.

On Thursday, preliminary results of HSBC's January survey of Chinese factory purchasing managers indicated a contraction in manufacturing for the first time since July. Despite the disappointing China data, the severe cold spell in parts of the U.S. and higher forecasts for global economic growth boosted the outlook for oil demand.

On Wednesday, the International Monetary Fund raised its growth forecasts for the global economy and the U.S. economy.

The deep chill blanketing much of the central and eastern U.S. has reduced stocks of heating oil as homeowners crank up the thermostat and electric utilities burn it to avoid paying for natural gas.

Natural gas has skyrocketed to record prices of more than $100 per 1,000 cubic feet on the spot market in some U.S. regions. The increased demand is also reflected in a less severe rise in prices for natural gas futures.

Brent crude, a benchmark for international oil, was up 13 cents to $107.71 a barrel on the ICE exchange in London.