Oil prices rebounded this evening as traders reacted to impressive economic growth in the United States and worried over worsening political turmoil in Egypt. Brent crude surged $1.39 to $98.78 a barrel, while US crude soared $2.44 to $88.08 a barrel.
Analysts said figures showing that the US economy grew at an annual pace of 3.2% in the fourth quarter of 2010 raised hopes for increased oil demand.
The oil market won more support from ongoing political unrest in Egypt. Analysts said there were concerns that this could affect the Suez Canal and the safe passage of oil and gas to and from Europe.
Elsewhere this week, OPEC kingpin Saudi Arabia has suggested that the cartel could still raise its crude output to meet an increase in demand, amid high US inventories. The Organisation of Petroleum Exporting Countries (OPEC) could raise output to meet a 2% increase in demand during 2011, Saudi's oil minister Ali al-Naimi said on Monday.
Meanwhile, the gap between Brent and New York has widened to a record, at more than $12 dollars, owing to the high level of crude stockpiles at the Cushing storage depot in Oklahoma.
