BUSINESS

The price of oil rises to $95 a barrel on positive US economic data

05/28/2013 05:23 EDT | Updated 07/28/2013 05:12 EDT
NEW YORK, N.Y. - The price of oil rose to US$95 a barrel Tuesday, supported by gains on global stock markets.

Benchmark oil for July delivery rose 86 cents to close at $95.01 a barrel in New York. It was the first gain for oil in five trading sessions.

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 were showing strong gains by mid-afternoon. European and Asian markets closed higher earlier.

Oil's gain 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.

Brent crude, a benchmark for many international oil varieties, was up $1.61 to $104.23 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the New York Mercantile Exchange:

— Wholesale gasoline rose one cent to $2.85 a gallon.

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

— Natural gas shed six cents to $4.17 per 1,000 cubic feet.

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

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