June 5 (Bloomberg) -- Crude oil rose above $70 in New York for the first time since November after the U.S. reported fewer job losses than forecast last month.

Oil is heading for its third weekly increase after Goldman Sachs Group Inc. and OPEC predicted a pick-up in economic activity will stimulate fuel demand and boost prices. U.S. payrolls fell by 345,000, the smallest drop in eight months, after a revised 504,000 loss in April, the Labor Department said today in Washington.

“For the time being, U.S. macro data seems to be what’s driving crude prices, and not the fundamentals, which look uninspiring at best,” said Edward Meir, an analyst with MF Global Ltd. in Connecticut. “For now, it is inadvisable to stand in the way of what seems to be investor money clearly piling into commodities.”

Crude oil for July delivery rallied as much as $1.51, or 2.2 percent to $70.32 a barrel on the New York Mercantile Exchange, the highest since Nov. 5. It traded for $69.79 at 1:45 p.m. London time. Prices are up 6 percent this week, poised for a third weekly advance.

To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net

Last Updated: June 5, 2009 08:46 EDT