Oil Rises a Second Day, Climbs Above $100, as European Growth Accelerates
Baku, May 13(AZERTAC). Crude oil rose for a second day in New York after strong economic data in the euro zone fueled speculation that fuel demand in Europe will increase.
Oil climbed as much as 1.7 percent, erasing an earlier decline and exceeding $100 a barrel. Germany`s gross domestic product jumped 1.5 percent in the first quarter, the Federal Statistics Office said today. The Bank of Korea unexpectedly kept interest rates unchanged after two increases this year.
Crude for June delivery gained as much as $1.73 to $100.70 a barrel in electronic trading on the New York Mercantile Exchange and traded at $100.34 at 9:20 London time. It earlier fell as much as 1.1 percent to $97.87 a barrel. Prices are up 3 percent this week and 34 percent in the past year.
Brent oil for June settlement rose $1.34, or 1.3 percent, to $114.31 a barrel on the London-based ICE Futures Europe exchange. Prices are up 4.8 percent this week.
The oil market is “structurally bullish,” Jeffrey Currie, the London-based head of commodity research at Goldman Sachs Group Inc., said in an interview.
Germany and France powered economic growth in the euro area in the first quarter as booming exports fueled domestic spending in the bloc`s core, offsetting turmoil sparked by sovereign debt woes in Greece, Ireland and Portugal.
German GDP jumped 1.5 percent from the fourth quarter and the French GDP rose 1 percent, exceeding economists` median forecasts of 0.9 percent and 0.6 percent respectively.
Austria`s economy grew 1 percent and the Netherlands` expanded 0.9 percent. First-quarter GDP figures for the 17- nation euro region are due from the European Union`s statistics office in Luxembourg at 11 a.m.
Rising floodwaters on the Mississippi River may affect 10 percent of Louisiana`s onshore crude oil production. Opening the state`s Morganza spillway to alleviate the flood may affect 2,264 wells that produce 19,278 barrels of crude oil a day, said Matt Ross, communications director for the Louisiana Oil and Gas Association.
About 150 companies are preparing for an onslaught of water should the spillway be opened, he said. The work includes removing lease equipment and adding markers to wells.
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