Brent crude prices rose on Friday as Iran's upcoming parliamentary vote on halting exports to the European Union kept supply uncertainty in focus and another US refinery problem helped send gasoline futures surging. US crude prices slipped in choppy trading, weighed down by data showing that while the US economy grew by 2.8 percent in the fourth quarter, its fastest pace in 1-1/2 years, it gained less than the 3.0 percent expected.
Brent and US crude remained on pace to post a weekly gain. US gasoline futures jumped to their highest since late August on news that a mechanical problem may shut the gasoline-making unit at ConocoPhillips' Bayway refinery in New Jersey. The Bayway problem added to concerns about supply sparked by closures and slated closings of other US refineries and the insolvency of Europe's Petroplus.
"(US) crude oil prices are under pressure due to the disappointing Q4 GDP reading, and would likely be much lower except for the support given to the complex by gasoline from the Bayway outage," John Kilduff, partner at Again Capital LLC in New York, said. "The multiplicity of issues surrounding the refining industry at the moment look to continue to underpin prices in the otherwise poor demand environment," Kilduff said. Brent March crude rose 60 cents to $111.39 a barrel by 1:13 pm EST (1813 GMT), having traded from $110.49 to $111.99. US March crude was down 11 cents at $99.59 a barrel, having swung from $99.13 to $100.63.
US gasoline futures were up 7.71 cents at $2.9237 a gallon, after reaching $2.9677. US heating oil futures, the distillate benchmark, also rose. Total Brent crude trading volumes were 7.2 percent above the 30-day average, while US crude turnover was 37 percent under its 30-day average. US gasoline trading volume was already 66 percent above its 30-day average.
Iran's parliament on Sunday will consider a measure calling for a halt in oil exports to the EU as early as next week, in advance of the bloc's embargo of Iranian oil set for July as the West's dispute over Tehran's nuclear program continues. Royal Dutch Shell, one of the biggest consumers of Iranian crude, said it will implement the terms of the EU embargo but will need some time to study details of the sanctions which are likely to push oil prices higher, chief executive Peter Voser said. Middle East producer Oman said it is willing to sell crude oil to Sri Lanka, another nation looking for alternatives to its threatened primary supply from Iran.
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