Oil prices rise further

8th February 2012, Comments 0 comments

Crude oil prices extended gains on Wednesday as traders reacted to a forecast that global demand is set to grow and hopes for a Greek debt deal, analysts said.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in March, jumped $1.06 to $99.47 a barrel.

Brent North Sea crude for March rose 27 cents to $116.50 in London midday deals.

In a report Tuesday, the US Energy Information Administration forecast that worldwide demand is set to accelerate over the next two years.

"Crude prices have made gains with the EIA forecast of a growth in oil consumption and hopes of a solution to Greek debt trouble," said Nick Trevethan, senior commodities strategist at ANZ Research.

"EIA expects world markets to continue to gradually tighten in 2012 and 2013, as increases in global consumption outpace production growth," the report said.

On Tuesday, Brent hit six-month highs above $117 before falling back.

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© 2012 AFP

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