Oil rises above $95 a barrel, tracking stocks

Tuesday, May 28th, 2013 | Finance News

NEW YORK (AP) — The price of oil rose above $95 a barrel Tuesday, supported by gains on global stock markets.

By midday in New York, benchmark oil for July delivery was up $1.24 to $95.40 a barrel. The contract fell 10 cents on Friday. Monday was a holiday in the U.S.

Tuesday's rise was set to break a four-day streak of losses for oil prices on the Nymex.

Positive signs for the U.S. economy helped. U.S. home prices rose the most in seven years and consumer confidence reached a five-year high. U.S. stock markets posted increases of more than 1 percent by midday. European and Asian markets closed higher earlier.

Oil's gains could be fleeting if recent concerns about demand resurface. China, which has seen a decline in manufacturing activity, releases data on factory production later this week. In the U.S., demand for gasoline has been weaker compared with last year. And bad weather in some regions over the Memorial Day weekend may have kept drivers closer to home, wrote Phil Flynn, senior market analyst at The PRICE Futures Group, in a daily newsletter.

The average price for a gallon of gas fell over the long weekend, by 2 cents to $3.63. That's a penny less than last year.

Brent crude, a benchmark for many international oil varieties, was up $1.70 to $104.35 a barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline rose 3 cents to $2.87 a gallon.

— Heating oil climbed 6 cents to $2.91 per gallon.

— Natural gas shed 3 cents to $4.21 per 1,000 cubic feet.

___

Pablo Gorondi in Budapest and Pamela Sampson in Bangkok contributed to this report.

Source