World oil prices rose today, but trimmed earlier gains after US fourth-quarter economic growth fell short of market expectations.
New York's main contract, West Texas Intermediate crude for delivery in March, added 19 cents to $99.89 a barrel. Brent North Sea crude for March increased by 51 cents to $111.30 in London deals.
US economic growth sped up to 2.8% in the fourth quarter, the Commerce Department said today, lower than predicted as consumer spending did not rise as much as expected.
Forecasts on average for the government's first estimate for the quarter were for a pickup to a 3.2% growth pace after the third quarter's tepid 1.8% expansion.
The oil market had seen moderate gains yesterday, benefiting from the US Federal Reserve's extension of the timeframe of its ultra-loose monetary policy to bolster US growth. That also weighed heavily on the dollar. A weaker US currency makes dollar-denominated crude cheaper for buyers holding other currencies, tending to boost demand.
Traders kept an eye on the tense situation between oil-producer Iran and the West over Tehran's suspected nuclear weapons programme, which has triggered tough sanctions from the US and Europe.
European Union foreign ministers have agreed a ban on Iranian oil imports and a phase-out of existing contracts up to July 1 to pressure Tehran to end its controversial nuclear programme. They also froze the assets of the country's central bank while ensuring legitimate trade under strict conditions.
In a retaliatory move, Iran's parliament is expected to consider next week a bill to ban oil exports to Europe immediately before the embargo comes into force, according to media reports.
The Islamic republic, which is already under four rounds of United Nations sanctions, vehemently denies its nuclear programme masks an atomic weapons drive as the West alleges, and insists it is for civilian purposes only.
