Oil prices were up $3 on Monday, to near $100 a barrel, supported by a strong start to the U.S. holiday shopping season, continuing tensions in the Middle East and new hopes for progress in the European debt crisis.
By early afternoon trading in Europe, benchmark crude for January delivery was up $2.81 to $99.58 a barrel in electronic trading on the New York Mercantile Exchange.
Earlier in the session, it rose as high as $100.74. On Friday, the contract rose 60 cents to settle at $96.77.
In London, Brent crude was up $2.51 at $108.91 on the ICE futures exchange.
Oil took its cue from Asian and European stocks markets, which were considerably higher Monday after a record 226 million shoppers visited stores and websites during the four-day U.S. holiday weekend starting on Thanksgiving Day.
That was up from 212 million last year, according to early estimates by The National Retail Federation.
Reports that France and Germany might circumvent European bureaucracy to get nations using the euro common currency to comply with strict rules for budget discipline also boosted sentiment.
A weaker dollar makes crude cheaper for investors trading in other currencies and often helps raise oil prices. On Monday, the euro was up to $1.36 from $1.32 late Friday in New York.
Crude has fallen from above $103 more than a week ago amid investor concern that Europe's debt crisis will undermine global economic growth and oil demand.
Concerns about prolonged conflicts in some of the world's most important oil suppliers also helped push prices up.
On Monday, a gas pipeline in Egypt's Sinai Peninsula transporting fuel to neighboring Israel and Jordan was bombed, forcing its shutdown and halting exports.
"Crude prices … would be much lower were it not for the substantial geopolitical risk premium in place due to instability" in the Middle East and North Africa, said a report from JBC Energy in Vienna.
"Besides civil unrest in Syria and Yemen, sectarian tensions in Saudi Arabia are also on the rise. Meanwhile, stricter sanctions have been placed on Iran with some European countries even considering a ban on oil imports."
In other Nymex trading, natural gas was up 3.7 cents at $3.7 per 1,000 cubic feet. Heating oil added 4.7 cents to $2.99 a gallon and gasoline rose 7.4 cents to $2.53 a gallon.
usatoday.com
By early afternoon trading in Europe, benchmark crude for January delivery was up $2.81 to $99.58 a barrel in electronic trading on the New York Mercantile Exchange.
Earlier in the session, it rose as high as $100.74. On Friday, the contract rose 60 cents to settle at $96.77.
In London, Brent crude was up $2.51 at $108.91 on the ICE futures exchange.
Oil took its cue from Asian and European stocks markets, which were considerably higher Monday after a record 226 million shoppers visited stores and websites during the four-day U.S. holiday weekend starting on Thanksgiving Day.
That was up from 212 million last year, according to early estimates by The National Retail Federation.
Reports that France and Germany might circumvent European bureaucracy to get nations using the euro common currency to comply with strict rules for budget discipline also boosted sentiment.
A weaker dollar makes crude cheaper for investors trading in other currencies and often helps raise oil prices. On Monday, the euro was up to $1.36 from $1.32 late Friday in New York.
Crude has fallen from above $103 more than a week ago amid investor concern that Europe's debt crisis will undermine global economic growth and oil demand.
Concerns about prolonged conflicts in some of the world's most important oil suppliers also helped push prices up.
On Monday, a gas pipeline in Egypt's Sinai Peninsula transporting fuel to neighboring Israel and Jordan was bombed, forcing its shutdown and halting exports.
"Crude prices … would be much lower were it not for the substantial geopolitical risk premium in place due to instability" in the Middle East and North Africa, said a report from JBC Energy in Vienna.
"Besides civil unrest in Syria and Yemen, sectarian tensions in Saudi Arabia are also on the rise. Meanwhile, stricter sanctions have been placed on Iran with some European countries even considering a ban on oil imports."
In other Nymex trading, natural gas was up 3.7 cents at $3.7 per 1,000 cubic feet. Heating oil added 4.7 cents to $2.99 a gallon and gasoline rose 7.4 cents to $2.53 a gallon.
usatoday.com
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