Oil futures end week strong

NEW YORK -- Oil prices appeared headed for the strongest week so far this year on better-than-expected unemployment numbers and what some experts believe may be overly optimistic expectations about the U.S.'s appetite for energy.

Benchmark crude for June delivery rose $1.04 cents to $57.75 a barrel on the New York Mercantile Exchange. In London, Brent prices rose 83 cents to $57.31 a barrel on the ICE Futures exchange.

The government continued to issue reports this week that influenced energy prices, but in which direction depended largely on how the data were interpreted.

For example, the Energy Information Administration said America's oil surplus grew less than expected, which is typically gives energy prices a boost. But levels rose nonetheless, meaning storage houses were bloated with more crude than has been seen in nearly 19 years. Growing levels of unused crude in most cases would drive energy prices down.

In addition, the government said refineries have cranked up operations a bit more. But it also said American petroleum consumption has dropped to its lowest level in a decade.

Then on Friday, the U.S. Labor Department said that employers cut 539,000 jobs in April. That was less than expected and the smallest reduction in six months. However, the U.S. unemployment rate climbed to 8.9 percent, the highest since late 1983.

Retail gasoline prices, which had lingered around $2 a gallon (53 cents a liter) for weeks, climbed for the eighth straight day.

For most, a sustained rise in energy prices seems hard to justify.

"There's shock and disbelief that oil and gas can defy the normal historical reactions to supply and demand," analyst Phil Flynn said in a client note. "Traders are calling me and are stunned with no idea of what is happening."

In other Nymex trading, gasoline for June delivery rose less than a penny to $1.6715 a gallon and heating oil gained 1.27 cents to $1.4979 a gallon. Natural gas for June delivery jumped 7.8 cents to $4.159 per 1,000 cubic feet.