MW: Crude futures rise, rebounding after recent declines
NEW YORK (MarketWatch) -- Oil futures rose on Tuesday, recovering some lost ground after a string of declines and aided by rising equity markets and better-than-expected U.S. retail sales data.
Crude oil for August delivery gained 96 cents, or 1.6%, to $60.69 a barrel in electronic trading on Globex.
Earlier, the contract soared to an intraday high of $61.36 a barrel.
"Crude futures were higher as risk appetite improved following a rally in equity markets," said analysts at Sucden Financial Research.
On Wall Street, stock index futures pointed to a higher opening, as Goldman Sachs Group (GS 148.27, -1.17, -0.78%) beat even the most optimistic estimate of its second-quarter results and as retail sales data also exceeded estimates. See Indications.
U.S. retail sales rose a better-than-expected 0.6% in June, the best gain in five months, the Commerce Department estimated Tuesday. The consensus forecast of Wall Street economists was for retail sales to rise 0.5%.
Positive economic data tends to boost the price of oil because it raises hopes of a swift global economic recovery and a rebound in energy demand.
Oil futures fell 20 cents to $59.69 a barrel on the New York Mercantile Exchange, as persistent concerns over demand encouraged traders to continue to sell. See full story.
Energy traders are awaiting data on petroleum supplies.
The American Petroleum Institute will report inventories late on Tuesday afternoon, while the Energy Information Administration will release its more closely watched report on Wednesday morning.
Analysts surveyed by Platts expect a decline in U.S. commercial crude stocks of 2.1 million barrels for the week ended July 10. They also project a rise of 750,000 barrels in gasoline stocks and an increase of 1.6 million barrels in distillate stocks.
Refinery utilization is expected to edge down 0.3 percentage points to 86.5%.
Also on Globex Tuesday, August reformulated gasoline gained 1 cent to $1.65 a gallon and August heating oil rose 2 cents to $1.52 a gallon.
August natural gas futures rose 10 cents, or 3%, to $3.37 per million British thermal units.
