Oil rallies on US jobs report

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Oil rallies on US jobs report

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Oil prices rose after the government reported that the U.S. economy added more jobs last month.

04 February,2012 02:58 am

World oil prices surged Friday after unexpectedly good jobs data signaled the US economy was growing more strongly than believed.New Yorks main contract, West Texas Intermediate (WTI) crude for delivery in March, rose $1.48 to $97.84 a barrel.Brent North Sea crude for March delivery rallied $2.51 to $114.58 a barrel in London.The US economy added a net 234,000 jobs last month, pushing the unemployment rate down to 8.3 percent, its lowest level in nearly three years, government data showed Friday.The news was underpinned by new figures on the key services sector of the economy, which picked up activity in January also at a pace much faster than expected.With the United States the worlds biggest crude-consuming nation, stronger growth likely means an uptick in energy consumption that would be a positive for prices.The economic data points continue to come on strong and underpin prices, said John Kilduff of Again Capital.Also supporting prices was heightened tensions between Sudan and South Sudan which has forced a slowdown of production in South Sudan.Adding to the mix was a Washington Post report that US Defense Secretary Leon Panetta believes there is a strong possibility that Israel will strike Irans nuclear installations this spring.