Oil above $107 as U.S. economy improvesMarch 13, 2012 - 12:12 AMT PanARMENIAN.Net - Oil prices rose above $107 a barrel Tuesday, March 13, in Asia as traders bet an improving U.S. economy will boost demand at a time when the ability to increase crude production is limited, AP reports. Benchmark oil for April delivery was up 68 cents to $107.02 at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.06 to settle at $106.34 per barrel in New York on Monday. Brent crude was up 19 cents at $125.53 per barrel in London. A third straight month of strong U.S. jobs growth in February has bolstered investor confidence that the recovery in the world's biggest economy is strengthening and will eventually increase demand for crude. The Federal Reserve is scheduled to hold a one-day policy meeting later Tuesday, and the oil market will be watching closely for any hint the central bank is considering stimulus measures to boost economic growth. Analysts are also eyeing the possibility that global crude producers won't be able to boost output enough to match demand if Iran's 4 million barrels a day of production is cut. "Global spare capacity has been dwindling, and crude demand is about to start rising seasonally," said Citigroup, which expects Brent to average $130 in the third quarter. "Recent developments point to higher oil prices to come and the odds of a spike to new peaks rises." Crude has jumped from $96 last month amid investor concern that growing tensions over Iran's nuclear program could spark a military conflict that disrupts global crude supplies. Israel has said it may carry out a pre-emptive strike on Iran's nuclear capabilities while Iran has threatened to halt oil tankers in the Persian Gulf's Strait of Hormuz. "The inflammatory rhetoric between the U.S. and Israel and Iran shows no sign of abating," Citigroup said. Israeli comments that there will be no public debate before a strike promises to keep oil elevated even if the rhetoric calms down, the bank said. In other energy trading, heating oil rose 2.7 cents to $3.27 per gallon and gasoline futures gained 1.8 cents at $3.34 per gallon. Natural gas slid 0.5 cent at $2.26 per 1,000 cubic feet. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Armenia-Qatar ties discussed in Doha The Secretary of Armenia’s Security Council met with the Deputy Secretary General of the National Security Council of Qatar. ARARAT special evening dedicated to Aznavour's 100th Anniv. On May 20 ARARAT legendary Armenian brandy, celebrated the centennial of Maestro Charles Aznavour with a special event. Surveying works underway in Armenia’s Kirants Surveying works are underway in the Armenian village of Kirants in the northern Tavush province. Armenia calls for prohibiting threats of attacks on nuclear facilities Armenia has raised the need for a treaty prohibiting attacks on nuclear facilities devoted to peaceful purposes. |