Oil prices steadied on Thursday as economic optimism from data showing that the U.S. service sector and retail sales improved was tempered by disappointing news from the labor market.

U.S. crude prices for October delivery rose 2 cents to $68.07 a barrel by 11:44 a.m. EDT (1644 GMT), after earlier reaching a high of $69.40 on U.S. stock gains and a weaker dollar.

London Brent crude was down 32 cents at $67.34 a barrel.

“Right now, there’s not a whole lot of momentum here in either direction. I think the trend for the week, which has been down, is still in force,” said Tom Bentz, senior commodity analyst, BNP Paribas commodity Futures Inc in New York.

“Everything seemed to kind of slip right after the jobs data,” he added.

U.S. jobless claims fell last week, according to a report released by the Department of Labor on Thursday, but the prior week’s figure was revised up.

The number of

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Lukoil is apparently contemplating a joint refinery investment with ConocoPhillips on the East Coast of the US.  ConocoPhillips says it has no plans to build a new US refinery.  Russian gas exports to countries other than ex-Soviet bloc fell 50% year on year in January to May.  As the Ukraine-Russia gas problem rumbles on, the EU has been attempting to put together a loan for Kiev as it hits another payment deadline for its gas debt to Russia.  Ukraine's state firm Naftogaz could secure up to $4 billion in financing with the help of Russian investment bank Troika.  The world's biggest buyer of liquefied natural gas, Korea Gas Corp., and Mitsubishi Corp. have agreed to jointly consider the possibility of developing gas reserves in Venezuela and purchasing stakes in liquefied natural gas plants in Australia and ...

Chevron & Shell Affected by Nigerian UnrestIn the last month or so, oil majors Chevron Corporation (CVX) and Royal Dutch Shell plc (RDS.A), two of Africa's biggest energy producers, have come under a string of attacks from Nigeria's main militant group, The Movement for the Emancipation of the Niger Delta (MEND).The West African country has struggled to control MEND's hostilities, which started attacking Nigeria's oil industry and kidnapping oil workers three years ago.On May 25, San Ramon, California-based Chevron, the fourth largest publicly traded oil company in the world and with a strong presence in the Niger Delta, had to shut down approximately 100,000 barrels per day of oil production (about a quarter of its oil production in Nigeria) after a pipeline attack by MEND.On June 10, the militants claimed responsibility ...

OPEC says willing to cut production further from March…  Impending U.S. stimulus package supportive…  Dismal U.S. jobs data still weighs on sentiment…

Oil climbed towards $42 a barrel on Monday after OPEC said it was willing to cut oil output further if needed to stabilise oil prices.

The market was also supported by a giant U.S. economic stimulus package that the administration of U.S. President Barack Obama is expected to get through Congress this week.

U.S. crude for March delivery rose $1.67 cents to $41.84 a barrel by 1448 GMT. London Brent climbed $1.45 cents to $47.66.

“If we think we still need more action, I’m sure the conference will take more action to stabilise the market,” the secretary-general of the Organization of Petroleum Exporting Countries, Abdullah al-Badri, told reporters in London. He was referring to OPEC’s supply policy meeting on

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Crude oil has tumbled to prices not seen for five years. But Byron King says the energy industry can’t function with prices this low. Investment in the future is drying up, and so is the existing oil supply. And that’s why the long-term price trend of crude is still way up.

This from Rude Awakening:

As crude oil languishes near a 5-year low of $35 a barrel, forward-looking investors have good reason to suspect that a new bull market is about to begin. Sure, oil prices might continue slumping over the near term. But don’t kid yourselves; the long-term price trend is up…maybe way up.

Back when oil was selling at $147, I said that the world does not run very well at such lofty energy prices.  A lot of things just stop working at $147 for a barrel of oil, particularly things with a large energy component.  The airlines

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Hello 2009.  What do you have in store for us? Will you finally put the immense problems of the economy behind you? What surprises are you going to spring on us?

Nobody gave me a crystal ball for Christmas. Then again it doesn’t take one to predict a lousy 2009. “More of the same” isn’t much of a prediction, is it? It’s more like a status report projected into the future.

I don’t believe in “more of the same.” Either things will get better or worse. The one thing they won’t do is stay the same. Here are six things I think will happen in ‘09.

1. The BRICs (Brazil, Russia, India and China) will have a terrible year. China will compete with the U.S. on who has the bigger government-led infrastructure program. They will also compete on whose is more effective. China’s will be building roads and schools. In addition

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I'm appearing on Fox Business TV at 1:00 to 1:06 today on the Stuart Varney Show. Stuart's a good guy, so probably no chairs will be flung (ha-ha). Anyway, I'm going on to talk about oil prices.brbrIf you don't get Fox Business -- I don't get it on my darned cable -- here are the talking points I'm bringing for my interview ...brbrGoldman Sachs predicts oil prices will fall to $30 a barrel.brbrOPEC President Chakib Khelil said all the group’s members support an oil output cut at this week’s meeting, including the largest producer Saudi Arabia.brbrOPEC is about 75% compliant with the last round of production cuts (cutting production by 1.5 million barrels a day from Nov. 1) – that’s pretty good by their standards.brbrRussia, a non-OPEC producer, will likely cut production as well. OPEC is asking Russia to reduce oil output by 200,000 to 300,000 barrels a daybrbrWe are ...

IEA predicts 2009 oil demand growth after 2008 contraction… Saudi Nov oil output complies with OPEC target-oil min… Expectations of deeper supply cut by OPEC next week

Oil rose above $45 on Thursday after the International Energy Agency predicted global growth in oil demand would resume in 2009 and Saudi oil minister said OPEC’s top exporter pumped less oil than expected last month.

World oil demand growth would return in 2009 after shrinking this year for the first time since 1983, the IEA, which advises 28 industrialized nations on energy policy, said in a monthly report. It also cut forecasts for supply outside OPEC next year.

“We knew the bad bits, demand down, but the supply downgrade was supportive,” said Rob Laughlin of MF Global.

U.S. crude was up $2.23 at $45.75 a barrel by 1152 GMT, after surging $1.45 to settle at

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Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao have signed a ‘much-delayed’ agreement under which Transneft will supply China with oil via a new section of its ESPO pipeline. A new report from the International Energy Agency shows that global oil output is falling at a faster rate than originally thought, with a 9.1% annual rate of decline predicted if current conditions continue. Reasons for consumer concern over prices: BP’s profits are up 148% this quarter. Russia’s electricity providers are struggling with cash flow problems as customers postpone payments. Russia's Natural Resources ministry insists that there is no reason why Imperial Energy should not be sold. US Defense Secretary Robert Gates wants Russia and the US to update nuclear agreements and further reduce nuclear warheads as part of broader intentions to communicate a stronger message ...

by Edward Hugh: Barcelona"The Kazakh government is ready to step in,'' Kazakhstan's Prime Minister Karim Masimov said this morning in a telephone interview with Bloomberg "The Kazakh banking system with the support of the government and central bank will fulfill all obligations to international investors.....We have our own specific plan to survive without any external support....I don't think we need support from the International Monetary Fund or overseas.'' Well that is good news, so at least we know that one of the CIS and CEE economies won't be looking to the IMF for bail-out support in this crisis which is presently growing by the day. So Kazakstan, that country which is reputedly host to reserves of approximately 95% of the elements in the periodic table, with a population of around 15 million housed on a surface area greater than the whole of Western Europe, is going to be able to look after itself. But hang on a minute, just where is Kazakhstan, and just what have they been getting up to over there, and why the hell should I take Karim Masimov's word for it, when just about all the other Iceland Look-alike show contestants seem to be saying the same? After all, didn't those extermely bright and able young people over at RBC Capital Markets in Toronto say in a report only last week that, along with Latvia, the country's $100 billion oil-led economy is among the most vulnerable to the present global credit crisis and the skid-row economic trajectories that go with it simply because of its excessive reliance on short-term foreign borrowing. And isn't it the case that the cost of protecting Kazakhstan government debt against default has more than doubled this month - to over 1,000 basis points (or 10%), the level for borrowers that investors term ``distressed,'' according to CMA Datavision credit-default swap prices. Only Ukraine, which as we know is already seeking IMF support, is classified as being a bigger risk among European emerging-market governments. Surely all those highly dedicated, bright, and extremely able young people who are doing all that trading know what they are about, don't they?