Oil Gains From One-Week Low on Speculation Economy to Boost Fuel Demand: report
Oil rebounded from the lowest price in almost a week as investors bet that fuel demand may increase amid signs the U.S. and Chinese economies are strengthening, Bloomberg reported.
It said futures gained as much as 0.7% in New York after losing 1 yesterday.
U.S. retail sales rose in February by the most in five months, a Commerce Department report today showed. China's industrial output growth will pick up in March and April, a former industry minister said. Oil has climbed this year on concern that tension with Iran may lead to military conflict in the Middle East, where more than half the world's oil reserves are located.
Oil for April delivery rose as much as 79 cents to US$107.13 a barrel in electronic trading on the New York Mercantile Exchange. It was at US$106.88 at 12.36 p.m. London time. The contract yesterday fell US$1.06 to US$106.34, the lowest settlement since March 7. Prices are 8.1% higher this year.
Brent crude for April settlement on the London-based ICE Futures Europe exchange was up 57 cents, or 0.5%, at US$125.91. The European benchmark contract was at a premium of US$19.03 to New York crude. The spread close at US$19 yesterday, the most since Feb. 6.
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