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Oil Gains on Signs of Growing Demand

November 30, 2010 at 3:25 by Vladimir Vyun

Oil gained as US consumers spent over the Thanksgiving weekend more than in previous year, suggesting that demand for commodities, including fuel, may increase. The National Retail Federation reported that about 212 million shoppers went to stores and websites over the holiday weekend in the US, on average spending $365.34. The average US shopper increased purchases by 6.4 percent compared to the previous year.

Cold weather may increase demand for heating fuel in the eastern part of the US and in Europe. Temperatures forecast to be lower than normal from December 7th to December 13th in the eastern half of the US. Temperatures in Paris may be as low as minus 5 degrees Celsius today, compared with an average minimum of 4 for this time of the year, while temperatures in London may drop to minus 6 on December 3rd.

The January future for oil delivery added $0.08 to $85.81 per barrel on NYMEX. January settlement for Brent crude gained $1.76 (2.1 percent) to $87.34 per barrel on ICE yesterday.

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