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Oil price rises above US$91 on signs of growth
Oil prices jumped more than 4 percent yesterday, reaching the highest level in more than two months, on signs of economic growth in the US and Asia.
After bracing for a possible recession in the US and Europe, analysts say investors have changed course. They’re now trading with the expectation that Western economies will keep growing this year - albeit slowly. As the economy strengthens, demand for oil rises to run factories and fill drivers’ gas tanks.
“The market was being held back by fear” of a recession, PFGBest analyst Phil Flynn said. “We haven’t seen stellar economic numbers so far, (but) they haven’t been recessionary.”
Benchmark crude rose US$3.87, or 4.4 percent, to finish at US$91.27 per barrel in New York. Prices haven’t been above US$91 per barrel since August 5. Brent crude rose US$1.89 to end at US$111.45 a barrel in London.
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