LONDON (SHARECAST) - Crude oil futures rose above $82 a barrel for the first time since May, despite disappointing economic data, as investors looked ahead to key inventory data.
Crude oil for September delivery rose $1.21 to $82.55 a barrel on the New York Mercantile Exchange, the highest close since the start of May.
Oil traders overlooked data indicating a slowdown in manufacturing and the housing market. US factory orders fell 1.2% in June, a much greater decline than expected. The May figure was revised to a 1.8% decline.
Pending-home sales for June dropped by 2.6%, which was better than the expected 5% decline. Meanwhile personal income was unchanged in June, while consumer spending rose 0.1%, according to the Commerce Department. The uninspiring data did little to deter oil’s charge past $82.
Instead the softening dollar supported demand for oil, as did expectations that the latest Department of Energy data will show a decline in supplies.
Crude oil supplies are expected to decline 1.6m barrels in the last week, following Tropical Storm Bonnie. Gasoline stocks are expected to fall 800,000 barrels while distillates, are expected to rise by 1.1m barrels.
Among precious metals gold ended the session slightly higher on news that China will increase the number of commercial banks authorised to import and export the yellow metal.
Gold for December delivery rose $2.10 to settle at $1,187.50 an ounce on the Comex division of the New York Mercantile Exchange.
Silver for September gained 0.3 cent to settle at $18.422 an ounce. Elsewhere palladium and platinum fell after the disappointing economic data.
