NEW YORKâCrude futures rose to the highest level in nearly four months as fears about Europe's debt crisis waned and traders focused on falling oil inventories.
Light, sweet crude for December delivery settled $1.21, or 1.2%, higher at $98.99 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange finished up 45 cents, or 0.4%, at $114.16.
After a sharp rally Thursday, traders resumed the push toward triple-digit oil prices Friday amid some hopeful signals on Europe's debt crisis.
Oil prices are up 24% since the beginning of October despite the spreading threat of debt problems in Greece, Italy and other euro-zone countries. Declining oil and fuel inventories in the U.S. coupled with improving economic data have convinced many investors that demand is set to rise. "We are headed right back up to $100 and the U.S. economy is taking us there," said Carl Larry, head of newsletter Oil Outlooks & Opinions.
U.S. stockpiles of distillates, which include heating oil and diesel, fell by six million barrels last week and are 6.9% below five-year average levels.
Still, some traders remain cautious as prices approach the key $100 level. Economic growth has been slowing in China, the world's largest energy consumer. And Europe's debt issues are far from resolved. "Even though the fundamentals are improving, it doesn't look like this European problem is going away," said Peter Beutel, president of Cameron Hanover.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com
