Oil prices rise 1.5% as strong US economic data eases demand concerns.

Catogory : Market Report

Oil prices gained 1.5 percent as strong U.S. employment data tempered fears about weakening global crude oil demand, and on expectations that an escalating conflict in Libya could tighten oil supplies. Optimism that Washington and Beijing are approaching a trade deal also boosted crude prices. Brent crude futures settled at $70.34 a barrel, up 94 cents, or 1.35 percent. The session high of $70.46 was the strongest since Nov.12. U.S.West Texas Intermediate (WTI) crude settled at $63.08 a barrel, up 98 cents, or 1.58 percent. Earlier in the session, WTI hit $63.24, the highest since Nov. 6.Brent recorded its second straight week of gains, while WTI saw its fifth consecutive weekly rise. This data is going to be enough to keep us above the $60 level for a least a couple of weeks, “Crude futures also received a boost from news of a potential slowdown in crude production out of Venezuela, as U.S. sanctions and energy blackouts hit the OPEC nation’s oil industry. Venezuelan state-owned oil company PDVSA expects its crude upgraders to operate well below capacity this month, Venezuela depends on the upgraders to convert the extra-heavy crude oil produced in the Orinoco Belt into exportable grades usable in overseas refineries.U.S. Energy companies this week increased the number of oil drilling rigs for first time in seven weeks,. [RIG/U] Companies added 15 oil rigs in the week to April 5.While crude production has soared in the United States to a record 12.2 million barrels per day, according to government data been released, some signs point to a near-term easing of growth.