Oil prices have risen for an entire week now. This is the longest rally since January 2010. Sanctions against Iran are also now threatening global oil supplies as well.
Oil futures rose to the highest level in nine months. Some favorable economic news in the U.S. and improvement in consumer confidence in the U.S. France and South Korea could mean higher consumer demand.
Gene McGillian a U.S. based analyst and broker said:"The bulls have the oil market by the throat," "There's an undercurrent of fear about the Iranian nuclear situation and what that will mean for global supplies as people scramble to replace Iranian barrels." Crude for delivery in April rose 31 cents to 108.14 a barrel. Contracts reached the highest level since last May 5.
April Brent oil added 9 cents to $123.71 a barrel on the London-based exchange. While downside risks from economic slowdown are receding somewhat at the same time worries about disruption of oil supplies is increasing driving prices up. For more see this Bloomberg article.