Prices for crude oil reached a one-year high on Friday, as increasing industrial production in the United States raised hopes that the economic recession might be easing.
US Crude oil futures gained for the seventh straight day, and has increased by 12.9% since October 7, and is now just above US$78 a barrel. The move came after a report released by the US Federal Reserve indicated a 0.7% rise in factory output.
Brent crude oil was also up, gaining 76 cents to reach $76.99.
Paul Crovo, an oil analyst based in Philadelphia, Pennsylvania for PNC Capital Advisors, said that there were increasing hopes that the economy would rebound. "There continues to be optimism about an economic rebound. Prices have been rising on speculation that this will lead to a tightening of the supply-demand balance going forward," he said.
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