Oil prices extend gains in trading on global demand

Crude oil prices climbed above $82 per barrel in electronic trading Monday afternoon in Asia, extending last week’s strength on an improving outlook for global demand.

Crude for April delivery climbed as high as $82.08 a barrel on Globex before edging back a bit to $81.94, still up 44 cents. “Like most other commodities, oil prices rose after U.S. non-farm payrolls surprised to the upside,” analysts at Credit Suisse said in a research note Monday. Read full story on jobs.

Oil markets managed to close the week above the $80 level, which is a “positive technical sign,” they said.

Prices last week also found support after Chinese Premier Wen Jiabao said in his report to the Chinese legislature that he would maintain an 8% growth rate for the economy this year. The positive economic outlook raised prospects for oil demand.

“In the past few days, market moves have been led by technicals,” said Tomokazu Amano, analyst at Mitsubishi Corp Futures & Securities in Tokyo.

“Now that $80 or higher is here to stay, we are seeing an influx of speculative money from funds and others.”

Money managers extended their net long crude oil futures positions on the New York Mercantile Exchange in the week to March 2, the Commodity Futures Trading Commission said on Friday.

Tags:  Asia, demand, global, oil prices, trading