Oil rises on supportive economic data, supply worry

Oil prices rose more than two per cent on Tuesday on supportive economic data that strengthened the euro, coupled with worries about potential supply disruptions in Iran and Kazakhstan, Reuters reported.A sharp fall in Spanish short-term borrowing costs boosted the euro, though in thin trade, along with fresh signs that the German economy is holding up despite euro zone debt problems. German business sentiment rose sharply in December, against expectations for a decline.Iran has invited the UN International Atomic Energy Agency to visit for talks, following the IAEAs report last month pointing to military links to Tehrans nuclear programme and as Iran faces tightening sanctions.Sacked oil workers in Kazakhstan demanded to know who ordered police to fire on protesters during clashes in the Central Asian state that is estimated to produce 1.6 million barrels per day of crude , similar to Libyas output before its civil war .US housing starts and building permits jumped to a 1-1/2-year high in November as demand for rental apartments rose, suggesting the housing market could be entering a tentative recovery.Brent February crude rose $2.78 to $106.42 a barrel, having reached $107.27.The US January crude contract, set to expire at the end of Tuesdays session, rose $3 to $96.88 a barrel, having reached $97.45.US crude pushed back above the 200-day moving average of $95.78, with the 20-day moving average higher at $98.10 seen as a key resistance level."An improved tonne to the euro is being facilitated by a sharp drop in short-term Spanish yields," President at Ritterbusch & Associates, Jim Ritterbusch, said in a note.
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