Investing.com – Crude oil futures extended sharp gains on Tuesday, rallying above USD97-a-barrel following the release of upbeat U.S. housing data, while a combination of easing concerns over the euro zone’s debt crisis and fears over a disruption to global oil supplies provided further support.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD96.92 a barrel during early U.S. morning trade, soaring 3.05%.
It earlier rose by as much as 3.25% to trade at USD97.12 a barrel, the highest since December 14.
Crude prices added to gains after the U.S. Census Bureau said in a report that U.S. building permits rose to the highest level since March 2010 last month, while U.S. housing starts climbed to a 19-month high.
The upbeat housing report came after German research institute Ifo said that its Business Climate Index rose to 107.2 in December from 106.6 the previous month, confounding expectations for a decline to 106.0.
Also Tuesday, Spain saw borrowing costs fall sharply at an auction of three and six-month government bonds, easing concerns over the fiscal health of the region’s fourth-largest economy.
The news boosted appetite for riskier assets, such as stocks and commodities and dampened demand for the safe-haven U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, tumbled 1.05% to trade at 80.08.
Crude prices drew additional support from the possibility that sanctions over Iran’s nuclear program will disrupt supplies from the world's fifth-largest crude oil exporter.
Eleven countries in a coalition that includes the U.S. and European and Arab states will meet in Rome later in the day to discuss imposing tougher sanctions on the Middle Eastern country.
Investors were also monitoring social unrest in Kazakhstan’s oil-rich western province after at least 15 people were killed in the state's deadliest riots in decades. The country's crude production is estimated at around 1.6 million barrels per day.
Meanwhile, markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.0 million barrels last week, while gasoline supplies were forecast to increase by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery jumped 2.9% to trade at USD106.64 a barrel, with the spread between the Brent and crude contracts standing at USD9.72 a barrel.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD96.92 a barrel during early U.S. morning trade, soaring 3.05%.
It earlier rose by as much as 3.25% to trade at USD97.12 a barrel, the highest since December 14.
Crude prices added to gains after the U.S. Census Bureau said in a report that U.S. building permits rose to the highest level since March 2010 last month, while U.S. housing starts climbed to a 19-month high.
The upbeat housing report came after German research institute Ifo said that its Business Climate Index rose to 107.2 in December from 106.6 the previous month, confounding expectations for a decline to 106.0.
Also Tuesday, Spain saw borrowing costs fall sharply at an auction of three and six-month government bonds, easing concerns over the fiscal health of the region’s fourth-largest economy.
The news boosted appetite for riskier assets, such as stocks and commodities and dampened demand for the safe-haven U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, tumbled 1.05% to trade at 80.08.
Crude prices drew additional support from the possibility that sanctions over Iran’s nuclear program will disrupt supplies from the world's fifth-largest crude oil exporter.
Eleven countries in a coalition that includes the U.S. and European and Arab states will meet in Rome later in the day to discuss imposing tougher sanctions on the Middle Eastern country.
Investors were also monitoring social unrest in Kazakhstan’s oil-rich western province after at least 15 people were killed in the state's deadliest riots in decades. The country's crude production is estimated at around 1.6 million barrels per day.
Meanwhile, markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.0 million barrels last week, while gasoline supplies were forecast to increase by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery jumped 2.9% to trade at USD106.64 a barrel, with the spread between the Brent and crude contracts standing at USD9.72 a barrel.