LONDON (SHARECAST) - Oil prices rose on Tuesday, recovering from a two-day losing streak, as US stocks ended higher following earnings reports from Citigroup and IBM.
Crude for June delivery rose 72 cents to settle at $83.85 a barrel on the Comex division of the New York Mercantile Exchange.
The gradual re-opening of European air space also helped demand for oil, analysts said.
Crude has been driven lower in recent sessions, pressured by concern about fraud charge against Goldman Sachs. Goldman, currently under investigation by the SEC and FSA, beat market expectations when it posted earnings that nearly doubled in the first quarter.
As concern about Goldman eased and US stocks rose, oil recovered as traders examine signs of a sustained economic recovery.
Focus will be on Wednesday’s weekly crude inventory reports while on a quiet week for US economic data, initial jobless claims is due out Thursday.
The weaker dollar encouraged interest in gold on Tuesday with the June contract rising $3.40 to settle at $1,139.20 an ounce on the Comex division of the New York Stock Exchange.
Bullion futures ended higher as buyers moved in following losses in the two previous sessions.
