LONDON (ShareCast) - US crude oil settled at a three month high on Tuesday after data showed housing starts surged 22% from January's figure despite expectations of a decline.
It's the first time housing starts have risen since last
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June. Meanwhile builder permits, which is a measure of builder confidence, also rose 3%, confounding expectations of a decline.
Separate inflation figures came in lower than expected. Oil traders cheered the day's economic data and a day of gains on Wall Street.
US light crude oil for April delivery added $1.81 to settle at $49.16 a barrel. Oil prices were also pushed higher ahead of the expiry of April's contract.
Expectations that data out Wednesday will show an increase in weekly crude inventories also buoyed demand for oil.
Gold receded for a second day after the upbeat housing data and rising stocks reduced demand for its safe haven qualities. COMEX gold for April delivery fell $5.20 to settle at $916.80 an ounce.
May silver fell 22 cents to $12.67 an ounce while copper for May lost 2 cents to $1.72 a pound.
