Brent crude oil trading higher on latest US data

Brent crude oil prices are trading higher on Friday on optimism fuel demand will increase amid improved prospects for an economic recovery in the US. Brent crude oil futures for February settlement traded at $73.50 a barrel, up 13 cents, on the London based ICE Futures Europe exchange at 2:26 p.m. Singapore time. Yesterday, the contract dropped 92 cents to settle at $73.37 a barrel.

Oil prices have gained this week after the Federal Reserve said factories produced more goods in November than anticipated, signaling fuel demand may rise. Below normal temperatures, which boosted heating demand last week, are forecast from Chicago to New York in the next two weeks, while heavy snow is expected in London today.

“It’s been a colder-than-normal start to the winter across a lot of the key US winter heating regions,” said Toby Hassall, a research analyst at CWA Global Markets Pty in Sydney. “If we see a continuation of that it will provide support to the oil market.”

“I don’t see the oil market as being especially tight but I think anticipation of an international economic recovery is a key factor still supporting it,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “What we’re seeing is some buying partly reflecting the earlier dip in the oil price.”

Tags:  brent oil prices, demand, trading, US