Reply #4: Oil Traders Increasingly Expect a Rally, Survey Says

[54anickel]

http://www.bloomberg.com/apps/news?pid=10000086&sid=aJq.ci8tZeE0&refer=latin_america

Feb. 11 (Bloomberg) -- Crude oil traders increasingly expect prices will rise because of higher demand and declining inventories, a Bloomberg survey found.

The proportion predicting higher prices doubled from a week ago to 34 percent in yesterday's poll. The percentage of traders anticipating lower prices fell to 34 percent, and the proportion expecting little change also declined, leaving participants divided on the market's likely direction. Last week, 17 percent of traders anticipated a rise in prices and 58 percent a drop.

World oil use may rise 1.8 percent to 84 million barrels a day this year, the International Energy Agency said yesterday. That's 120,000 barrels more than the Paris-based agency predicted last month. Led by gains in China, consumption increased 3.4 percent last year, the fastest growth since 1976.

``I still think we can see $50 broken and very well broken, I would say by end-March or mid-April,'' said Fred Lackman, an independent oil trader in Toronto. ``The demand will be there. The Chinese economy is in a growth mode.''

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