LONDON (SHARECAST) - Crude oil futures rose following the release of stronger than expected US housing data and as the American Petroleum Institute's inventory data showed crude stocks fell much more than expected last week.
Crude oil for August delivery settled up $1.57 at $97.50 a barrel on the New York Mercantile Exchange.
On the ICE futures September Brent crude oil settled up $1.01 at $117.06 a barrel.
The latest figures from the American Petroleum Institute showed US crude oil supplies fell 5.2m barrels to 354.2m.
Oil prices were also lifted by a report that said work started on 629,000 US houses in the month of June, up almost 15% on the month, figures from the Commerce Department showed. Analysts had forecast housing starts of 575,000 in June.
Sentiment was also boosted by reports that the euro zone are making progress in approving another bailout for Greece ahead of Thursday's meeting of European officials.
Meanwhile in the US President Barack Obama signalled that there had been some steps forward in talks to raise the US debt ceiling before deadline 2 August.
Gold prices struck a new record price of $1,610.70 an ounce amid debt worries in the US and Europe.
However the shine was wiped off the yellow metal and it snapped a ten day winning streak after Obama said progress had been made in reaching an agreement on a deficit reduction plan in order to avoid a debt default before 2 August.
Gold for August delivery eased $1.30 to settle at $1,601.10 an ounce on the Comex division of the New York Mercantile Exchange.
