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OIL: Oil prices surge amid supply concerns

Oil prices surged before the Christmas and New Year holidays amid lingering concerns about energy supplies during the northern hemisphere winter, analysts said on Friday.

The market was also underpinned by generally strong US economic data suggesting that demand may not weaken as much as had been anticipated.

New York's main contract, light sweet crude for February, closed up a strong US$2.25 at US$93.31 per barrel.

In London, Brent North Sea crude for February delivery settled up US$1.58 at US$92.46 per barrel.

"Oil futures were trading higher in thin volumes ahead of the holiday period," said Andrey Kryuchenkov, an analyst at the Sucden brokerage in London.

"In the absence of any significant fundamental news, trading is likely to remain choppy, amid light volume, with no real direction, as most market participants are preparing to go on holidays," Kryuchenkov said.

Analysts predicted that the market would trade within tight ranges for the remainder of this year -- a year that has witnessed record price levels close to US$100 a barrel.

In the US, a report showed consumers shook off a slump in housing and tight credit and boosted spending by a stronger-than-anticipated 1.1 percent last month.

The US Commerce Department report also showed that personal incomes rose 0.4 percent, a notch weaker than forecast.

This week, the market was supported by data showing that US crude stocks had fallen below their five-year average for the first time in more than three years.

Prices had bounced higher on Wednesday after the US Department of Energy said US crude stockpiles tumbled by a more-than-expected 7.6 million barrels to 296.9 million barrels in the week that ended Dec. 14.

Most analysts had expected a drop of 1.5 million barrels in weekly crude stocks.
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