Oil rises above US$70

NEW YORK : Oil prices jumped above $70 a barrel Thursday after the government said that the economy may be faring better than previously thought.

In a revised reading on gross domestic product in the first quarter, the Commerce Department reported a 5.5 percent annualized decline from January to March, rather than the 5.7 percent it reported a month ago.

The slowing economy has slashed demand for energy as factories shut down and fewer people drive to work or take leisure trips by car or plane. But it's thought to be shirking at a slower pace this quarter, and refinery closures combined with ongoing political turmoil in oil producers Iran and Nigeria helped boost crude prices throughout the day. Benchmark crude for August delivery added $1.55 to $70.22 a barrel on the New York Mercantile Exchange. In London, Brent prices increased $1.87 to $70.20 a barrel on the ICE Futures exchange.

Courtesy: WN Economy