New York: Oil prices rose to a nine-month high above $ 106 a barrel on Thursday, driven by market confidence in Germany and continued concerns about tensions over Iran's nuclear programme.
Benchmark crude for April delivery rose 61 cents to $ 106.89 per barrel in after noon trading on the New York Mercantile Exchange. The contract rose 3 cents to settle at $ 106.28, the highest since May, yesterday.
German business confidence rose for the fourth consecutive month in February, raising hopes that Europe'sbiggest economy is growing again after a contraction of 0.2 percent in the last quarter of 2011.
Despite the rising prices, there seemed to be ample supplies available. US crude supplies rose by 1.6 million barrels, or 0.5 per cent, to 340.7 million barrels last week, according to the Energy Department.
Meanwhile, the price of natural gas was down 2.5 per cent after the government said supplies remain significantly higher than average levels for this time of year.
Natural gas futures on Thursday fell 7 cents to $ 2.58 per 1,000 cubic feet in New York.
A boom in North American shale drilling has filled underground storage facilities across the country. The Energy Information Administration says supplies are more than 40 per cent higher than the five-year average.
Major natural gas producers recently cut back on production as prices linger around a 10-year low, but analysts say they're not doing enough to reduce the glut.
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