Oil was higher in Asian trade today as investors drew hope from better than expected housing data in the US, the world's biggest crude user.
New York's main contract, light sweet crude for August delivery advanced 72 cents to $98.22 a barrel and Brent North Sea crude for September delivery was 78 cents higher at $117.84.
Data yesterday by the Commerce Department showed US housing starts jumped 14.6% from May to an annual rate of 629,000 units. That was much better than expected by analysts who had predicted an average 570,000 starts for last month.
It was the second month of increases in a row, and the department sharply hiked its May number to 609,000 units, from an initial 560,000 estimate. Construction has been under siege since the collapse of the housing bubble in 2006 and the 2008-2009 recession.
Global markets were given a lift after US President Barack Obama yesterday threw his weight behind a plan to slash the country's deficit that could see it avoid a default.
Traders have also been looking ahead to tomorrow's emergency summit of euro zone leaders as they seek ways to prevent a default by Greece that could potentially have destabilising effects on larger European economies.
Oil dealers fear a default in the US or Greece could trigger financial upheaval and an economic slowdown across the continent, cutting into global energy demand.
