Oil up again Wed. on US economy, shrinking supplies, Iran sanctions

?

Oil on Wednesday (Dec. 21) traded near its highest in a week in New York, on signs that the U.S. economy will be spared a recession and amid growing pressure on Iran to curtail its nuclear program, Bloomberg News reported.

Futures were little changed after rising as much as 1.3 percent. The American Petroleum Institute showed crude inventories dropped to the lowest in almost two years. Analysts in a Bloomberg News survey predicted the U.S. Energy Department will say later Tuesday that supplies fell 2.13 million barrels. The February contract surged 3.4 percent on Tuesday, on U.S. housing data that beat estimates, unexpected growth in German business confidence and concern that shipments from Iran may be curbed.

"Oil has been strengthening as we get more positive U.S. economic data, such as housing starts, along with a recovery in the euro and the possibility of Iranian reprisals," said Robert Montefusco, senior broker at Sucden Financial Ltd. in London.

Crude for February delivery on the New York Mercantile Exchange was at $97.28 a barrel at 1:32 p.m. London time, up 4 cents, after rising as much as $1.26 to $98.50, the highest since Dec. 14. On Tuesday, the contract climbed $3.19 to $97.24. Front-month futures have risen 6.5 percent this year after gaining 15 percent in 2010.

Brent oil for February settlement on the London-based ICE Futures Europe exchange was down 23 cents at $106.50 a barrel after rising $1.03, or 1 percent, to $107.76 a barrel. The European benchmark contract was at a premium of $9.27 to New York-traded West Texas Intermediate grade. The spread widened to a record $27.88 on Oct. 14.

President Barack Obama?s administration and European Union governments are seeking help from Arab and Asian allies to reduce Iran?s oil revenues. EU nations, the U.S. and Asia-Pacific allies discussed possible measures in Rome on Tuesday and agreed to increase pressure on Iran, the world?s No. 3 crude exporter in 2010, to abandon its suspected nuclear weapons program, according to an Italian Foreign Ministry statement.

U.S. crude inventories fell to 330 million barrels last week, the lowest since the period ended Jan. 22 last year, the industry-funded API said Tuesday.

Gasoline stockpiles decreased 394,000 barrels to 213.9 million, based on the API data.

Copyright 2011, Bloomberg LP. All rights reserved.?

?

Back

Source: http://www.oilandgaseurasia.com/news/p/0/news/13765/

coraline jacqueline laurita mcfadden mcfadden ponder ponder loretta lynn