MW: Oil extends gains on hopes of swift economic rebound
By Polya Lesova, MarketWatch
FRANKFURT (MarketWatch) -- Oil futures rose above $85 a barrel, extending their recent gains on expectations of a swift recovery in the U.S. economy and energy demand.
Crude oil for June delivery gained 21 cents to $85.33 a barrel in electronic trading on Globex. It earlier hit an intraday high of $85.68 a barrel.
"Stronger-than-expected data on order intake and U.S. home sales have kindled hopes that the economic recovery of the world's largest oil consumer is gaining momentum," said analysts at Commerzbank AG in a note to clients.
Oil prices rose nearly 2% on Friday, buoyed by a report showing that sales of newly built homes soared 27% in March.
Also, new orders for U.S.-made durable goods, excluding transportation goods, increased 2.8% in March, the fastest growth since the recession began in December 2007.
No major U.S. macroeconomic data are scheduled for release on Monday. Stock futures pointed to a slightly higher opening on Wall Street, as traders awaited results by Caterpillar Inc. (CAT 68.78, +1.27, +1.88%)
The dollar index (DXY 81.56, +0.08, +0.10%) , which tracks the performance of the greenback against a basket of other major currencies, gained 0.2% to 81.531.
