Oil rose for a second day as U.S. builders broke ground on more houses than at any time in the past 19 months and on speculation that further sanctions against Iran will curb supply. Prices gained 3.6 percent after the Commerce Department reported housing starts increased 9.3 percent last month to a 685,000 annual rate, exceeding the highest estimate of economists. Oil also rose as participants at a meeting in Rome vowed to increase pressure on Iran, the world’s No. 3 crude exporter, over its nuclear program. Prices are 6.4 percent higher this year after rising 15 percent in 2010. The more actively traded February contract rose $3.19 to $97.24. In the U.S., the economy is on the road to recovery, with falling unemployment and consistently improving growth against a background of low and falling oil stockpiles. U.S. crude inventories fell by 2.13 million barrels last week, according to the median estimate of 12 analysts surveyed. Meanwhile, another reason that could cut the production is the ongoing riot in Kazakhstan (KMG) western town of Zhanaozen. Riots spread this weekend in the Mangistau region. The area accounts for 25 percent of the country’s oil production of 1.6 million barrels a day.
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