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Crude rises on German data, Iran concerns

Published 04/20/2012, 01:19 PM
Updated 04/20/2012, 01:21 PM
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Investing.com - Crude oil futures rose in U.S. trading Friday on news morale in Germany's business world is improving and also on concerns that a European ban on Iranian crude is coming closer with no breakthrough in sight.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD104.27 a barrel, up 1.50%, off from a session high of 104.69 and up from an earlier session low of USD102.86.

Despite concerns that the European debt crisis is getting worse in the large Spanish economy, business confidence is improving in the continent's largest economy.

The German Ifo business sentiment index for April rose to 109.9 from 109.8 the previous month, outpacing expectations for the figure to drop to 109.5.

April's figure represented a nine-month high.

A stronger German economy sparked demand for oil on sentiment the country will need more fuel to grow.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde said that while dark clouds remain over Europe's horizons, the fund expects member countries to bolster a firewall to contain the debt crisis, which further boosted crude.
 
On the supply front, a European embargo on Iranian crude is set to take effect in July, and concerns that the impasse between the West and Tehran will continue through then pushed prices up on Friday.

The West accuses Iran of developing a nuclear weapons program, and the European oil embargo forms part of a string of sanctions slapped on Tehran for not disclosing its nuclear program.

On the ICE Futures Exchange, Brent oil futures for June delivery were up 0.76% and trading at USD118.89 a barrel, up USD14.62 from its U.S. counterpart.







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