Oil climbs above $75 as world demand grows

NEW YORK — Oil rose slightly yesterday, inching over $75 a barrel despite a stronger dollar, in seesaw trade inspired by gains on Wall Street due to positive job numbers and news of a rescue plan for Greece. US crude for March delivery rose 67 cents to $75.19 a barrel by 12:51 pm EST (17:51 GMT). London Brent crude rose 79 cents to $73.33.

“Basically, prices were following the dollar earlier and then when equities started to rally, that brought in some buying,” said Peter Beutel, president, Cameron Hanover, New Canaan, Connecticut. US stocks climbed on news of a European Union plan to aid debt-ridden Greece as well as US data showing first-time jobless insurance applications fell more than expected last week.

But markets remained concerned about whether the aid would be enough to pull Greece out of fiscal crisis, and the euro slipped against dollar. The oil market’s focus on Wall Street and the dollar may be due, in part, to a delay in the US weekly inventory data from the Energy Information Administration, which traders scour for clues on demand in the world’s top oil user. Weekly EIA data, normally released on Wednesdays at 10:30 am EST, was delayed until today. Gasoline inventories also rose more than expected, climbing 1.6 million barrels to 228.8 million, exceeding analysts’ estimates of a 500,000-barrel build.

The International Energy Agency (IEA) forecast yesterday that world oil demand and prices would rise this year, driven higher by strong growth in emerging economies, revising upward its earlier forecasts. The Paris-based agency said demand was now expected to be 86.5 million barrels per day in 2010 compared to a forecast last month of 86.3, while average prices will rise to $75 per barrel from $58 in 2009.
                                                                                                                                                                                                                              — Agencies