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Reuters
LONDON
Oil prices rose nearly 2 percent on Wednesday to the highest in 2-1/2 years, with buying spurred on by a sixth day of unrest in OPEC member Iran and strong economic data from the United States and Germany.
Iran's elite Revolutionary Guards have deployed forces to three provinces to put down anti-government unrest, their commander said on Wednesday. Six days of protests have left 21 people dead.
US West Texas Intermediate (WTI) crude futures CLc1 were at $61.35 barrel, 98 cents or 1.6 percent at 11:06 a.m. EST (1607 GMT), just off the session high of $61.50, their highest since June 2015.
International benchmark Brent crude futures LCOc1 were up 89 cents or 1.3 percent at $67.46 a barrel after touching $67.62 a barrel, the highest since May 2015.
"While the Iran tensions are certainly a factor, the slew of remarkably strong economic data today is also forcing the rally," said John Kilduff, partner at Again Capital LLC in New York.
"Record low unemployment in Germany and the sky-high ISM manufacturing reading reinforces that demand for energy will continue to grow in robust fashion ... It's a multi-asset rally, which crude oil is caught up in today."
Germany's unemployment rate hit a record low in December, underpinning a broad-based economic upswing. US factory activity increased more than expected in December, a further sign of strong economic momentum.
Manufacturing and construction reports also fuelleded expectations for a robust US economy in 2018. The Dow Jones Industrial Average hit a record high.
