Oil extends gains as stock markets regain some poise on psoitive U.S. data

NEW YORK, N.Y. – The price of oil showed a small gain Tuesday as positive U.S. economic news provided some support while traders await the latest U.S. supply reports.

In New York, benchmark West Texas Intermediate crude for August delivery rose 14 cents to end at US$95.32 a barrel.

A trio of economic reports boosted both oil and stocks. The government said U.S. businesses ordered more long-lasting manufactured goods, including a surge in commercial aircraft orders. Readings on home prices and consumer confidence were also positive.

The Dow Jones industrial average was up more than 100 points in afternoon trading. Oil trading is often influenced by stock market trends which can reflect the state of confidence in the economic outlook.

Traders are awaiting the weekly report on oil and gasoline supplies due out Wednesday from the U.S. Energy Department. The U.S. supply of crude oil is near a record level, while gasoline supplies remain high because of tepid demand.

Brent crude, used to set prices for oil used by many U.S. refineries to make gasoline, rose 10 cents to end at US$101.26 a barrel.

In other energy futures trading on the New York Mercantile Exchange, natural gas lost nine cents to finish at US$3.65 per 1,000 cubic feet (28.32 cubic metres), heating oil rose less than a cent to end at US$2.86 a U.S. gallon (3.79 litres) and wholesale gasoline was unchanged at US$2.73 a gallon.

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