Oil hits 4-wk high as consumer confidence improves

NEW YORK (Reuters) – Oil prices rose more than $2 a barrel on Friday to hit a four-week high on support from improved U.S. consumer confidence and further evidence of record levels of compliance by OPEC with its agreed output cuts.

U.S. crude futures jumped $2.08 to settle at $53.20 a barrel, after hitting $53.65, the highest since April 3. Brent crude settled up $2.05 at $52.85.

The gains came after a survey showed consumers in the world’s top energy user felt more confident about the economy in April than at any time since the September failure of Lehman Brothers.

“This should push this market higher,” said Nauman Barakat, senior vice president at Macquarie Futures USA.

Equity markets also gained, continuing a strong trend in recent weeks of commodity markets riding in tandem with Wall Street and other global shares.

Reuters