* U.S. industrial production beats forecasts * High gasoline prices fuel U.S. consumer inflation * Stock market weakness offset by weaker dollar * Tensions with Iran keep supply worries in focus (Recasts, adds settlement prices, details throughout.) By Jeanine Prezioso NEW YORK, March 15 (Reuters) - U.S. crude oil futures settled higher on Friday, driven by strong U.S. industrial output data in the world's largest oil consumer and a weaker U.S. dollar. The weaker dollar buffered oil prices from declining on the back of the U.S. stock market being knocked off its highs. The dollar fell as investors opted to book profits after U.S. inflation data kept the door open for the Federal Reserve to continue its bond-buying program for the foreseeable future.FRX/ "The dollar is down a lot more in the last two days so hence the buoyancy in energy prices," said Walter Zimmermann, chief technical analyst with brokerage United ICAP in New York. "And energy prices are being insulated from stock market weakness by weakness in the dollar today." Crude oil prices are denominated in U.S. dollars and when the value of the currency sinks, prices rise to offset the weakness. The dollar index, which tracks the greenback versus a basket of currencies, fell 0.4 percent to 82.242.DXY .ID:nL1N0C78ZI U.S. crude oil futuresCLc1 settled 42 cents higher at $93.45 per barrel on Friday. Brent crude oilLCoC1 settled up 86 cents or 0.79 percent at $109.82 per barrel also on strong U.S. economic data, and Middle East supply concerns. U.S. industrial production strengthened more than expected in February on a rebound in manufacturing.ID:nL1N0C7283 But positive U.S. data did not buoy the stock market, which was off record highs as shares JPMorgan ChaseJPM.N declined. The bank was dealt a blow by a U.S. Senate report alleging it had ignored risks in a derivatives portfolio that led to $6 billion in losses.ID:nL1N0C75BL Separately, the U.S. Federal Reserve asked JPMorgan and Goldman SachsGS.N to improve how they determine capital payouts to shareholders as part of the banks' "stress tests".ID:nL1N0C709A Oil prices also got a boost on Thursday from U.S. President Barack Obama's comments that military force remained an option if sanctions and diplomacy failed to curb Iran's nuclear ambitions.ID:nL6N0C6EDI STANDOFF Iran was still more than a year from developing a nuclear weapon, Obama said in an interview with Israeli television broadcast on Thursday, six days before his visit to Israel. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ANALYSIS-Obama won't trip over Netanyahu's Iran "red line"ID:nL6N0C68LC For a 24-hour analysis on Brent:http://graphics.thomsonreuters.com/WT1/20131503085539.jpg Asia crude imports from Iran-http://link.reuters.com/vyw45t ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> Obama appeared to send a message to Israeli Prime Minister Benjamin Netanyahu on the need for patience with Washington's Iran strategy, while also showing U.S. resolve to confront Tehran if necessary. Worries that the standoff between the West and Iran over the Islamic Republic's nuclear program will escalate and disrupt oil supplies have kept Brent above $100 a barrel through most of 2012 and this year. HIGH U.S. GASOLINE PRICES U.S. consumer prices registered their biggest increase in nearly four years, with a rise in gasoline costs accounting for almost three-fourths of the jump in consumer prices, data released on Friday by the Labor Department showed.ID:nL1N0C6CQX According to data compiled by Gasbuddy.com, which tracks average U.S. retail fuel prices, the price of a gallon of gasoline at U.S. pumps has risen more than 40 cents this year to $3.67. Four-week average U.S. gasoline demand is up 1.1 percent from year-ago levels, government data showed earlier this week. U.S. gasoline futures for AprilRBJ3 rose 0.5 percent to $3.157 per gallon on Friday. (Additional reporting by Joshua Schneyer, Dasha Afanasieva, Simon Falush and Manash Goswami; Editing by Dale Hudson and Chizu Nomiyama) ((jeanine.prezioso@thomsonreuters.com)(+1 646 223 6241)(Reuters Messaging: jeanine.prezioso.thomsonreuters@thomsonreuters.net)) Keywords: MARKETS OIL/
UPDATE 8-Oil gains on weaker U.S. dollar
U.S. crude oil futures settled higher on Friday, driven by strong U.S. industrial output data in the world's largest oil consumer and a weaker U.S. dollar.
March 15, 2013




















