Oil Bounces Back Towards $117
Oil rose towards $117 a barrel on Tuesday, resuming its three-week rally, as investor concern faded about political risks in the Eurozone that had prompted a sell-off of riskier assets in the previous session.
European shares moved up and the euro rose after better-than-expected Eurozone PMI figures. Shares of British oil giant BP were up 1.7 percent after its fourth-quarter results beat expectations.
Brent crude was up $1.15 a barrel at $116.75 at 1215 GMT after falling as low as $115.01 earlier. It has gained over 4 percent in 2013 and reached a more than four-month high above $117 on Friday. US crude added 88 cents to $97.05.
“We do not envisage prices receding for any great length of time,” said Carsten Fritsch, analyst at Commerzbank. “The supply-side risks still prevailing, shrinking OPEC supplies and the brightening global economic outlook all suggest that such a retreat is unlikely.”
Lower output from the Organization of the Petroleum Exporting Countries has reduced an expected global supply surplus in 2013, while fighting in Syria and Iran’s dispute with the West over its nuclear work continues to pose the risk of wider disruption to Middle East supply.
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