U.S. oil rises to 12-week high

U.S. crude oil price rose on Tuesday and closed at a 12-week high on strong buying. The trading volume was massive as money came back to U.S. crude markets, driven by the expectation of domestic tightening inventories. But in Europe, the euro-zone finance ministers canceled a meeting due Wednesday, although the leaders summit would be held as scheduled. European debt concerns lingered. And the increase of oil production in Libya pressured the Brent crude, since Brent reflected more the global supply-demand relation. Light, sweet crude for December delivery gained 1.90 dollars, or 2.1 percent to settle at 93.17 dollars a barrel on the New York Mercantile Exchange, the highest settlement since Aug. 2. But in London, Brent crude for December delivery dropped 53 cents to settle at 110.92 dollars a barrel. The spread between the two global benchmarks, which reached a record high of 27.90 dollars a barrel in mid-October, narrowed to 17.75 dollars, the lowest level since early July.