Oil Rises On US Data; Bets For Stockpile Drop
NEW YORK, Aug 18 (Reuters) - Oil rallied on Tuesday, with U.S. crude settling up nearly 2 percent, after bullish economic data and bets for lower crude stockpiles in the United States, the world's largest oil consumer.
Short-covering ahead of Thursday's expiry of the key front-month contract in U.S. crude also helped the market advance from a 6-1/2 year low hit on Friday.
New York-traded U.S. crude settled up 75 cents, or 1.8 percent, at $42.62 a barrel. That put it at more than $1 above Friday's low of $41.35, which was the market's bottom since March 2009.
Brent, the London-traded global benchmark for crude, settled up 7 cents at $48.81, steadying from a three-day decline. Brent was initially down on Tuesday after stock markets in China, the second largest oil consumer, fell 6 percent.
The rally in U.S. crude helped cut its discount to Brent <CL-LCO1=R> to below $6 a barrel, from Friday's three-month high above $7.
U.S. crude was up from early in the session after housing starts in the United States hit a near eight-year high in July as builders ramped up construction of single-family homes, suggesting an economy firing on almost all cylinders.
Gains accelerated in the afternoon after an updated Reuters poll showed analysts expecting a drop of around 800,000 barrels in U.S. crude stockpiles last week, versus earlier bets for a decline of 600,000 barrels.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.