Oil price jumps more than 3 percent
NEW YORK (AP) — Oil prices soared on promising economic news out of Europe and the U.S.
Benchmark crude on Tuesday rose $3.34, or 3.6 percent, to end the day at $97.22 per barrel in New York. Brent crude, which is used to price foreign oil that's imported by many U.S. refineries, rose $3.09, or 3 percent, to finish at $106.73 per barrel in London.
Major stock indexes were up around 3 percent in afternoon trading.
Prices climbed on encouraging news about the global economy. Germany reported that business and consumer confidence rose unexpectedly in December, and Spain's borrowing costs plummeted in a debt auction as the country promised more austerity measures to resolve its debt problems.
In the U.S. retailers said holiday sales jumped last week, while the government reported a surge in apartment construction and building permits in November.
If consumer spending and construction activity continue to grow, demand for oil will likely follow.
Any excuse will increase oil prices the weather, unrest in countries, wars,earth quakes, Obama having a cold. The whole oil industry is regulated by world stock markets,speculators, and the out and out greed of the haves.
Consumers and businesses would feel pinched by a sustained period of $100-a-barrel oil — and not just motorists. Stock prices, which have lost more than 2 percent so far this week, could sink further. That would reduce household wealth and consumer
April Brent futures were up $1.40 at $113.20 a barrel by 1423 GMT. US crude futures were up 87 cents at $97.83 a barrel. Worries about the unrest in the region saw Saudi Arabia's benchmark stock index plunge to 20-month lows. Libya's National Oil