LONDON (SHARECAST) - Crude oil futures struck $77 a barrel on Tuesday, supported by a strong rally among US stocks and increased risk appetite.
Easing concern about Europe’s debt crisis also encouraged demand for oil on Tuesday.
Crude for July delivery rose to $77.19 and later settled up $1.82 a barrel at $76.94 on the New York Mercantile Exchange.
The weaker dollar brought some buyers on board while upbeat economic data boosted hopes of higher demand for oil products. Fresh data showed New York manufacturing conditions improved in June while US import prices fell in May, soothing fears about inflation.
Meanwhile a report showing a surprise increase in crude inventories was largely shrugged off. The latest figures from the American Petroleum Institutesaid US crude inventories rose 579,000 barrels last week, confounding analyst expectations for a 1.2m barrel decline.
Oil traders will be looking ahead to Wednesday’s stockpile data from the US Energy Information Administration.
A weaker dollar increased the allure of gold on Tuesday. Comex gold for August delivery rose $9.90 at $1234.40 an ounce in New York.
The precious metal was lifted to a high of $1237.00 as buyers moved in on its recent retreat.
