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Benchmark U.S. WTI light sweet crude was up 1.9 percent at $37.76 a barrel early afternoon in Asia, after jumping as much as 3.4 percent from the last day of trade in 2015, while Brent crude was up 2.3 percent at $38.12 a barrel after spiking 2.4 percent over the same period.
The kneejerk reaction came after Saudi Arabia cut ties with Iran, after its embassy in Tehran was attacked by Iranians protesting the Saudis' execution of a prominent Shiite cleric.
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