Oil Rises a Second Day on U.S. Fuel Demand, Libya Crude Production Outlook - Bloomberg

Oil advanced for a second day in New York as investors bet U.S. fuel demand may rebound and a recovery in Libyan crude output will take longer than expected.

Futures climbed as much as 0.7 percent before a government report tomorrow that may show U.S. gasoline inventories shrank last week while crude stockpiles rose. Prices also gained after a manufacturing guage improved in China, the world’s biggest energy user. London-traded Brent rebounded, after dropping as much as 3.2 percent yesterday as Libyan rebels entered Tripoli.

“The market got a little ahead of itself in terms of thinking that the Libyan conflict might be all over in a week,” said David Lennox, a resource analyst at Fat Prophets in Sydney, who predicts New York crude will average $115 a barrel this year. “For WTI, it still obviously has a focus on what’s happening in the U.S. in terms of petroleum demand.”

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