OIL FUTURES: Crude Up On Econ Growth Optimism, Asian Equities

Crude oil futures in Asia continued to consolidate on Friday's gains alongside regional stock markets on renewed optimism about the global economic recovery.

Light, sweet crude futures for October delivery traded at $74.17 a barrel at 0623 GMT, up 28 cents in the Globex electronic session. October Brent crude on London's ICE Futures exchange rose 37 cents to $74.56 a barrel.

A threat by Nigeria's main militant group to resume attacks on oil installations is also lending support to crude, but given high global oil stockpiles, the issue may not be as big as in recent years, analysts said.

Nymex crude settled at a 10-month high Friday after bettter-than-expected U.S. housing sales data fueled expectations of a faster economic recovery in the world's largest energy consumer.

"That sentiment is still resonating and people are reviving up their outlook for economic growth," said Ben Westmore, commodities economist at National Australia Bank.

Crude is likely to trade around these levels until U.S. inventories data Wednesday, with strong resistance at $75 a barrel, analysts said.

"The crude market's proximity to a shelf of summer highs that have been established around the $75.00-$75.25 area is worthy of attention, since a close above this level could easily ignite another flurry of fund buying interest," wrote Jim Ritterbusch, president of trading advisory firm Ritterbusch & Associates.

The next U.S. inventory data is of particular importance to traders because of the "unusual" drop that fueled a rally last week, said Yusuke Seta at Newedge Japan. "But there's still a glut in the market. Crude oil (stocks) might show a build of about a million barrels this week," Seta said.

Despite weak fundamentals, oil will continue to be buoyed by stock markets, Seta said, adding that "as long as stock indices don't crash, oil prices will be supported."

Nymex reformulated gasoline blendstock for September, the benchmark gasoline contract, rose 219 points to 201.75 cents a gallon, while September heating oil traded at 191.77 cents, 128 points higher.

ICE gasoil for September changed hands at $608.25 a metric ton, up $6.50 from Friday's settlement. link.....