Oil prices rally on Japan data

Oil prices rallied on Tuesday following better-than-expected economic data from Japan, analysts said. New York's main contract, West Texas Intermediate crude for delivery in March, jumped $1.55 to $100.33 a barrel. Brent North Sea crude for March delivery advanced $1.59 to $112.34. "Crude prices are trading higher after industrial production in Japan rose faster than forecast in December," said Westhouse Securities analyst Peter Bassett. Japan, a major oil importer, said Tuesday that household spending in the world's third largest economy rose for the first time since the devastating March 11 earthquake and tsunami last year. Industrial output also rose 4.0 percent in December, exceeding market expectations of a 2.8 percent gain and reversing November's 2.7 percent dip. The upbeat data showed a slight rebound in the Japanese economy, which was hit hard by the March disaster that left more than 19,000 people dead and missing, and triggered the Fukushima nuclear crisis. "Oil prices are higher ... reacting largely to the positive Japanese economic data showing increased spending," said Ken Hasegawa, energy desk manager at Newedge brokerage in Japan. Traders are also closely watching the latest efforts by eurozone leaders to resolve Greece's debt woes. Following a European Union summit that saw agreement on a new deal to avert future huge annual deficits, EU president Herman Van Rompuy called for a new deal with Athens "by the end of the week" on a second bailout.