Fundamental Oil | Learn Forex | GoLearnForex.com

After the US posted a much better-than-expected employment data, where the economy added 243 K jobs in January compared to the 140 K expected, while the unemployment rate fell to 8.3% from 8.5% previous, the dollar index managed to rise, on signs the economy is recovering steadily.

Although the dollar’s rise pushed the euro and the commodities down following the repost, oil managed to expand its gains on believed demand on oil from the largest oil consumer in the world might increase. Thereby crude is trading as of this writing around the $97.25 level while Brent is around $113.30.

More upside pressures to oil were given by the ongoing tension between Tehran and the west, as UAE and Qatar asked lenders on Thursday to stop financing trade with Iran, joining EU which imposed last month an embargo on all imports of oil from Iran increasing pressures on Tehran to abandon its nuclear program.

Meanwhile the United States Defense Secretary Leon Panetta was cite as saying he feared a possible Israeli strike as early as April, as Tel Aviv is trying to prevent Tehran from acquiring nuclear weapons. “Panetta believes there is a strong likelihood that Israel will strike Iran in April, May or June”, said Washington Post.

While the manufacturing data this week proved to be positive improving the demand outlook for oil and supporting the prices higher, the worries over Europe’s debt crisis continue to weigh down on prices as Greece and the private bondholders fail to reach an agreement over the size of the losses.