Forexpros – Crude oil futures traded above USD100-a-barrel on Tuesday, as oil traders continued to monitor simmering tensions between Iran and the West, while upbeat economic data from Germany, the U.S. and China eased worries over the global economic outlook.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD100.70 a barrel during U.S. morning trade, surging 1.84%.
It earlier rose by as much as 2.2% to trade at USD101.19 a barrel, the highest since January 12.
According to European Union sources, France was pushing for faster enforcement of the EU’s proposed embargo on oil imports from the Islamic Republic. Foreign ministers from the 27 European Union member states are scheduled to decide on sanctions on January 23 in Brussels.
Meanwhile, Saudi Arabia’s Oil Minister Ali al-Naimi said earlier that his country aimed to stabilize average crude prices at USD100-a-barrel in 2012.
He added that Saudi Arabia can make up for any loss of crude output if sanctions are placed on Iran. His comments came a day after Iran warned its Gulf neighbors to not step in to make up for any shortfall in its oil exports under new Western sanctions.
Crude prices found additional support after the New York Federal Reserve said that its index of manufacturing conditions improved more-than-expected in January, climbing to a nine-month high.
Separate data out of Germany showed that the ZEW index of German business sentiment recorded its largest ever monthly increase in January, indicating that the euro zone’s largest economy was performing strongly despite the effects of the region’s debt crisis.
The U.S. used 19.1 million barrels a day of oil in 2011, or 21% of global demand, while the euro zone accounted for nearly 16% of global oil consumption last year, according to data from British Petroleum.
Crude prices were boosted during the Asian trading session after government data showed that China’s economy expanded at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
While the data was better-than-expected, the nation’s economy grew at the slowest pace in more than two years and expanded less than 9% for the first time since mid-2009, fuelling speculation that Beijing was likely to ease monetary policy to stimulate growth.
China is the world’s second largest consumer after the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery rose 0.42% to trade at USD111.81 a barrel, with the spread between the Brent and crude contracts standing at USD11.11 a barrel.
Forexpros
