Oil prices rise on reports suggesting that the US economy is gaining strength

17-Jan-11

Benchmark oil for February delivery settled at US$91.54 on the Nymex, rising after government reports suggested that the US economy is gaining strength. It is reported that in USA, retail sales and industrial production both rose last month. As per another report by the US Labour Department, consumer prices excluding food and energy rose just 0.1% last year, meaning that the risk of inflation is low. Brent crude gained 62 cents to settle at $98.65 a barrel on the ICE Futures exchange in London. In its latest effort to curb inflation and restrain growth, China’s central bank raised the amount of money banks must keep on reserve. This led to oil price dip at the end of last week.