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Oil moves above $75 amid improving economic mood

Oil moves above $75 amid improving economic mood

Oil prices rose above $75 a barrel Friday, extending two days of gains on the back of improving economic figures and China's expression of support for Europe's recovery.
By early afternoon in Europe, benchmark crude for December delivery was up 66 cents to $75.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $3.04 Thursday to settle at $74.55.
This week's rally, the strongest for more than nine months, has added more than $6 a barrel to crude prices. Earlier this month crude prices were as high as $87.15 a barrel before falling steeply amid concerns that Europe's debt crisis could thwart efforts to stimulate growth.
Some analysts think that oil was due to bounce back because it dropped so quickly.
"Because the market was beaten down so fast it doesn't take that much to prop it up a little bit," PFGBest analyst Phil Flynn said.
Fuelling the crude price rise were China's expression of confidence in Europe's ability to find a path out of its recent debt troubles and the U.S. suspension of deepwater drilling for six months in response to the oil disaster in the Gulf of Mexico.
Gains in U.S. and Asian stocks and a U.S. government report Thursday that the overall economy grew at an annual rate of 3 percent in the first quarter added further momentum.
The Commerce Department was to release a report on spending and incomes later Friday. Both figures were expected to show rises.
In other Nymex trading in June contracts, heating oil rose 2.67 cents to $2.0261 a gallon and gasoline was up 0.83 cent at $2.0472 a gallon. Natural gas was up 4.3 cents at $4.337 per 1,000 cubic feet.
In London, the Brent crude July contact was up 63 cents to $75.29 on the ICE futures exchange.


Updated : 2021-04-15 17:04 GMT+08:00