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Crude gains on sentiment for improving U.S. economy

Published 03/16/2012, 01:02 PM
Updated 03/16/2012, 01:07 PM
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Investing.com - Crude oil futures rose in U.S. trading on Friday, bolstered by sentiments the U.S. economy will continue growing despite soft inflation and industrial output figures.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD105.92 a barrel, up 0.78%.

The commodity hit an earlier session high of USD106.11 and a low of USD105.14.

In the U.S., core inflation, industrial output and consumer confidence data came in slightly weaker than expected.

Industrial output figures came in flat in February, although revisions to previous months revealed the economy is improving and will need more oil and derivatives to grow.

Meanwhile, the market was still a little jumpy after reports hit the wire on Thursday that the U.S. and U.K. were planning to tap emergency oil reserves to lower prices, which the White House later denied.

The market has been on edge lately on fears that improving economies will pressure supplies, especially with ongoing tensions involving Iran, Israel and the West constantly stoking fears of supply cuts.

On the ICE Futures Exchange, Brent oil futures for May delivery were up 1.90% and trading at USD124.94 a barrel, up USD19.02 from its U.S. counterpart.

The gap in price between the two contracts is pushing close to a nearly USD20.00 all-time high and a historical spread of USD1.00.






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