Builders in the U.S. broke more ground in November on housing than any point during the past 19 months, according to information released from the U.S. Commerce Department. The increase in housing starts was 9.3 percent and crude oil's gains on Tuesday in response to the news were 3.6 percent. A diplomatic meeting in Rome had participants targeting Iran, which is the globe's third largest exporter of crude oil.
"The housing starts number is telling us that the U.S. economy is again making modest improvements," President Jason Schenker with energy consultant Prestige Economics in Texas told Bloomberg. "Iran can cause short-term dislocation in the market."
At 3:45 p.m. on Tuesday, crude oil futures gained 3.25 percent, a $3.37 increase to $107.01 per barrel.
The Associated Press reports that the energy commodity's gains are attributable to optimism about prospects for the global economy. Reports out of Germany, the pace-setter of the euro zone due to the size of its economic might, indicate December is seeing rises with confidence among businesses and consumers.
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