Forexpros – Crude oil futures rose in U.S trading on Friday after healthy consumer sentiment figures hit the wire, confirming expectations that the U.S. economy is improving and will need more oil and derivatives to grow.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at USD103.89 a barrel, up 1.08%, down from a session high of 104.11 and up from an earlier session low of USD102.84.
In the U.S., the Thomson Reuters/University of Michigan’s consumer sentiment index for March rose to 76.2, the highest since February 2011, from 75.3 in last month, outpacing analysts’ expectations.
The Commerce Department, meanwhile, reported that personal spending rose 0.8% in February, the most in seven months and above expectations for a 0.6% gain, although incomes rose only 0.2%, a little less than expected.
The news sent U.S. crude futures rising, reversing losses posted in recent sessions as investors viewed the world’s largest economy in a new light, shrugging off recent housing-sector figures that came in weaker than expected.
Hopes for calmer seas in Europe were renewed again after eurozone officials agreed to raise a combined lending ceiling for two rescue funds to EUR700 billion from EUR500 billion, which bolstered the euro.
News that Spanish Prime Minister Mariano Rajoy is planning to roll out an austere budget also buoyed oil, which saw further gains from a weakening dollar.
On the ICE Futures Exchange, Brent oil futures for May delivery were up 0.85% and trading at USD123.42 a barrel, up USD19.53 from its U.S. counterpart.
The gap in price between the two contracts is pushing is close to a nearly USD20.00 all-time high and a historical spread of USD1.00.
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