New York - Arabstoday
Oil prices rose more than 4 per cent last week after a series of developments suggested that higher oil demand and tighter global supplies lay ahead. Benchmark crude rose 76 cents on Friday to finish the week at $100.96 per barrel in New York. Prices climbed almost every day after ending at $96.77 a barrel a week ago. Brent crude rose 97 cents to finish at $109.68 a barrel in London. Prices jumped early Friday after the government reported that the unemployment rate dropped last month to 8.6 per cent — the lowest level since March 2009. Oil and gasoline demand has been tumbling in the US. It should rise as businesses ramp up and more people return to work. Friday\'s jobs report added to other encouraging news last week about the US economy. Manufacturing activity in November shot up to a seven-month high, auto makers reported big sales increases, shoppers boosted Black Friday sales for retailers and the Fed said the economy was expanding in most parts of the country. The Federal Reserve and the central banks of other countries increased the flow of dollars to foreign banks to boost lending around the world. The move forced the dollar lower versus other major currencies, and that tends to push oil prices higher. Oil, which is priced in dollars, usually rises in value as the dollar falls and makes crude cheaper for investors holding foreign money. Meanwhile, tensions increased last week over Iran\'s nuclear programme. Iran is suspected of dev-eloping nuclear weapons and Western nations are considering sanctions against the oil-rich nation. Angered at possible sanctions, Iranian protesters attacked the British embassy in Tehran on Tuesday.