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The cost of oil rose today, while rising above $ 110 per barrel as strong U.S. economic data fueled prospects for increasing demand for the largest oil consumer in the world, while concerns about supply from the Middle East supported prices.
Also note that the price increases have contributed to industrial production data. The Fed said that industrial production rose by 0.7 percent in February after it had remained at the same level in January. Economists had expected production to increase by 0.3 percent.
The report also said that the capacity utilization rate rose to 79.6 percent in February compared with a revised 79.2 percent in January. The growth of industrial production in February was due primarily to increased production of expensive consumer goods and production in the utility sector in the cold season. Total industrial production, which includes industry, mining and utilities sector grew by 2.5% compared with a year earlier. The production of goods increased by 0.8% in February, after declining in the previous month. The largest growth was in the consumer durable goods - a category of products, which includes electronics and automobiles. Production of motor vehicles and parts increased by 3.6%, succeeding decline the previous month.
We add that this report came after strong data on employment in the U.S., which were published yesterday, also helped convince investors that demand for energy will be stable.
Oil prices also got support Thursday from President Barack Obama's comments that military force remains an option if sanctions and diplomacy would fail to curb Iran's nuclear ambitions.
April futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 93.50 dollars a barrel on the New York Mercantile Exchange.
April futures price for North Sea petroleum mix of mark Brent rose $ 0.66 to $ 10.10 a barrel on the London Stock Exchange ICE Futures Europe.
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