(MENAFN- Gulf Times) Oil futures rallied yesterday, erasing losses on strong jobs data and US government forecasts for lower domestic crude production growth and higher global demand for oil.
US job openings surged to a 14-year high in February the Labor Department said in its monthly Job Openings and Labor Turnover Survey (JOLTS), lifting oil prices.
"That JOLTS report was certainly quite strong and strong employment equals strong gasoline demand," said John Kilduff, partner at Again Capital in New York.
Oil got more support from news that Minneapolis Fed President Narayana Kocherlakota made a case for waiting until the second half of 2016 to raise interest rates, and to then raise them gradually to just 2% by the end of 2017.
Crude futures got additional lift when an Energy Information Administration (EIA) monthly report raised forecasts for US and global demand growth and lowered forecasts for crude oil production growth in the US.
US May crude was up $1.65 at $53.79 a barrel at 12:58 p.m. EDT (1658 GMT), having traded from $51.17 to $53.84.
Brent May crude was up $1.10 at $59.22, having swung from $57.02 to $59.27.
Also cited as supportive was news that an oil spill into the Mississippi River on Monday forced authorities to close part of the waterway in Louisiana.
Eight refineries along the river in the region account for about 12% of US refining capacity, according to the EIA.
Crude futures fell earlier on signs of growing oversupply as Iranian officials visited China to seek more oil sales following the framework nuclear deal that could lead to lifting sanctions on Tehran.
Prices also were pressured by a Goldman Sachs report saying prices needed to remain low for months to slow US oil output growth.
The American Petroleum Institute's (API) weekly report on US oil inventories is due Tuesday at 4:30 p.m. EDT (2030 GMT), with the EIA's report following on Wednesday at 10:30 a.m. EDT.
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