Forexpros – Crude oil futures soared Wednesday, fueled by a double-shot of bullish news of supply worries on one hand and stronger economic data across the globe on the other.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD97.58 a barrel early in the session, up 3.75%.
The commodity hit a session high of USD97.64 and a low of 97.38 so far in early Asian trading on Wednesday.
Labor disputes in oil-rich Kazakhstan have escalated into protests that are threatening supply there, while in Iran, tensions remain high after diplomats at a Rome meeting considered fresh sanctions on Tehran for allegedly pursuing a nuclear program.
In the U.S., meanwhile, the government reported that housing starts rose by 9.3% in November, far outpacing analysts’ expectations.
At the same time in Europe, turnout at a Spanish auction exceeded Madrid’s goals, which sent government bond yields falling and hopes building that borrowing costs will drop.
In Germany, business confidence indices came in better than expected, fueling further optimism that the economy may improve and need more crude oil and derivatives to motor its progress.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery were up 0.07%, trading at USD107.08 a barrel, up USD9.50 from its U.S. counterpart.
The gap in price between the two contracts hovers between a nearly USD20.00 all-time high and a historical spread of USD1.00.
Forexpros
