NEWS,16.02.2012.

Crude oil hits six-month high

Oil drilling rig 

Brent crude rose today for a fourth day in a row, topping $120 a barrel - a six-month high - on worries about supply from Iran and from the North Sea, where output was expected to dip next month. A reversal of the euros losses on the day against the dollar also bolstered crude oil gains on both sides of the Atlantic. The euro surged back after reports that euro zone central banks had agreed to exchange Greek bonds they hold for new bonds as part of a deal to help the debt-strapped country. This raised fresh hopes that Greece's a long-sought debt bailout would be agreed by next week. US crude erased an early $1 decline and rose to a six-week high as upbeat data on jobless claims and housing brightened the outlook for domestic energy demand. The US data also helped lift Brent. US gasoline futures rose to their highest level in 5-1/2 months, at $3.0514 a gallon, for front-month March RBOB , up 1.5 % on the day, adding support to crude. A lower-than-expected gasoline stock build for last week shown in government inventory data released on Wednesday helped boost gasoline futures.In London, ICE Brent April crude was up 97 cents at $119.90 a barrel. Brent hit a session high of $120.38, the highest since an intraday high of $120.40 on August 1.In euro terms, Brent prices were the highest since 2008.US March crude was up 57 cents at $102.37, having fallen earlier to $100.84. It hit a session high of $102.69, the highest since January 12's high of $102.98."Crude futures popped on the euro reversal to the upside against the dollar and the S&P 500 also rose," said Addison Armstrong, senior director of market research at Tradition Energy in Stamford, Connecticut.” US crude, though lagging Brent's gains, is having a good run, considering where it was just days ago and with a lot of fundamental headwinds against it," he added. The spread's widening followed US government data on Wednesday showing a 2 million-barrel increase in stockpiles last week at the US delivery point in Cushing, Oklahoma. Supplies at the hub rose to the highest level since September and the gain was the biggest weekly rise since December 2009.Initial US claims for unemployment benefits unexpectedly fell last week to near a four-year low, suggesting the labour market recovery was gaining steam, and housing starts rose more than expected in January. Iran’s ambassador to Russia said plans to cut off supplies of Iranian crude to Europe would benefit only the Islamic republic, which in the past has been heavily dependent on imported fuel due to restricted refining capacity. In another front, Iran, the world's fifth-largest oil exporter, proposed an early resumption of long-stalled nuclear talks with world powers, according to a letter from Tehran to European Union policy chief Catherine Ashton.On Wednesday, oil prices jumped early after Iranian state television reported that the country was halting its crude exports to six European countries before the EU ban on Iranian crude takes effect in July. This was later denied by Iran's oil ministry, helping pare session gains. Crude oil output from the North Sea, home of the global Brent benchmark, is set to fall in March for a third month due to maintenance work and natural aging of oilfields there.Supply will average 2.18 million barrels per day in March, down 1.4 % from 2.12 million bpd the previous month, data compiled showed on Tuesday.