Oil Jumps On Iran Anxiety

On Tuesday, oil prices surged with the U.S. crude hitting the highest settlement since May after being fuelled by robust economic data from the United States and China and mounting concern about supply disruption from Iran.

Oil Jumps On Iran Anxiety

Brent crude jumped $5 in late activity and Tuesday’s gains on the first day of trading in the New Year added to Brent’s 13 percent rise in 2011.

“The supportive economic data and the geopolitical concerns are furthering the crude oil rally,” said John Kilduff, partner at hedge fund Again Capital LLC in New York.

“The temperature is going up every day now on the Iran situation — new sanctions, new missile launches, and saber rattling are all contributing,” Kilduff added.

Brent February crude rose $4.75 to settle at $112.13 barrel, the highest close since the November 15 settlement at $112.39. U.S. February crude rose $4.13 to settle at $102.96 a barrel, the highest close since May 10.

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