While the end of 2011 might have been quiet for commodities, the new year has been anything but so far, as oil prices spiked sharply in response to growing concerns in the Middle East.
USA Today reports that oil rose more than 4 percent over the course of the first day of trading in 2012, as tensions run higher about the implications of greater sanctions on Iran and that nation's threats to close the Strait of Hormuz.
"The supportive economic data and the geopolitical concerns are furthering the crude oil rally," said John Kilduff, a partner at hedge fund Again Capital, told Reuters. "The temperature is going up every day now on the Iran situation — new sanctions, new missile launches, and saber rattling are all contributing."
In addition to the recent troubles in the Middle East, ongoing recovery in the U.S. and news that China saw slight expansion in December served to encourage hopes for the global economy going forward.
At 4:10 on Tuesday, January 3, Brent crude oil had risen 4.67 percent, a $5.02 climb to $112.40 per barrel.
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