Encouraging signs of improvement came from the US economy and therefore oil prices in Asia hovered roughly below $100 per barrel.
Benchmark crude ready for February delivery was at $99.77 after it rose by 12 cents. These prices were recorded at the electronic trading exchange of the New York Mercantile Exchange, midday Singapore time. 29 cents later added to the contract and it reached $99.65 in New York.
In London moreover, Brent Crude fell by 6 cents and was at $107.95 a barrel on the Futures Exchange ICE. Since mid November, Crude oil has been trading below $100, ever since it jumped over from the $75 mark, with the news that the US economy might escape the approaching recession next year. The claims for benefits for jobless people too fell drastically. The past four week average was at 375,000 over a period of 3 and half years.
Another report from the National Association of Realtors revealed a striking rise in the number of contracts to purchase homes, which is a high since one and half years.
Nevertheless there are some analysts still fearing that the Europe’s debt crisis might drag the continent in a recession undermining its crude oil demands. The Eurozone is the prime driving force behind the oil prices and will continue to remain so in the first quarters of 2012 as well. The issue in the Eurozone is still intractable says energy consultant at Ritterbusch and Associates.
Tehran’s program of nuclear power is yet another crucial issue that concerns the investors. They are closely watching out for escalating tensions between the Western countries and Iran. Earlier this week, Iran threatened to shut down the key passage for oil exports – the Strait of Hormuz. There are speculations saying that oil prices are bound to gallop over by $50 in case Iran, exporting largest amount of oil closes the strait.
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