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Crude rises on U.S. consumer data, Iran nuclear impasse

Published 05/25/2012, 02:12 PM
Updated 05/25/2012, 02:15 PM
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Investing.com - Crude oil futures rose in U.S. trading Friday on stronger-than-expected consumer sentiment data as well as on a lack of progress in Iranian nuclear talks.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD90.98 a barrel, up 0.36%, off from a session high of USD91.31 and up from an earlier session low of USD90.21.

Consumers are feeling more optimistic in the U.S. these days.

The Thomson Reuters/University of Michigan's consumer sentiment index rose to 79.3 in May, topping forecasts for 77.8.
 
Consumer spending drives over 70% of U.S. economic output, and the sentiment reading, the highest in more than four years, sent oil climbing as a more robust U.S. economy will need more fuels to grow.

Meanwhile in Iraq, delegates from the U.S., U.K., China, France, Russia and Germany hit a stalemate in talks with Iranian officials to diffuse a standoff involving Iran's nuclear plans.

The West insists Iran is enriching uranium to build nuclear weapons, a charge Iran denies, arguing its nuclear program serves the country's energy needs.

Oil prices have fallen since Iran agreed to come to the negotiating table although talks in Iraq ended with no results save an agreement to continue discussions in June.

On the ICE Futures Exchange, Brent oil futures for July delivery were up 0.30% and trading at USD106.86 a barrel, up USD15.88 from its U.S. counterpart.






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