Oil rose for the first time in four days as German investor confidence jumped the most on record and as France pushed for faster enforcement of the European Union’s proposed ban on oil imports from Iran (OPCRIRAN).
Oil gained 2 percent after the ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations surged 32.2 points in January. France wants the embargo to be delayed by no more than three months, two officials with knowledge of the matter said.
“It looks like a recession in Europe is less likely now and people are feeling more bullish,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “The pressure against Iran remains high despite the delay.”
Crude for February delivery rose $2.01, or 2 percent, to settle at $100.71 a barrel on the New York Mercantile Exchange. Floor trading was shut yesterday for the U.S. Martin Luther King Jr. holiday. Prices have advanced 17 percent in three months.
Brent oil for March settlement increased 5 cents to $111.39 a barrel on the London-based ICE Futures Europe exchange.
The German index, which predicts economic developments six months in advance, surged to minus 21.6 from minus 53.8 in December, its second straight gain, according to the ZEW center. The increase is the biggest since ZEW started the index two decades ago. Economists forecast a reading of minus 49.4, according to a Bloomberg News survey.
