Oil rises toward $80 on economic recovery signs
By Joshua Schneyer
NEW YORK (Reuters) - Oil rose toward $80 a barrel on Tuesday, following U.S. equities higher on optimism the economy is recovering.
Oil prices rose after three days of declines as investors were encouraged by strong corporate earnings that boosted equities prices, and on expectations of further drawdowns in U.S. fuel inventories.
"Oil is up as the stock market moves higher and people also expect inventory data to show more big drops in product stocks," said Phil Flynn, analyst at PFGBest Research in Chicago.
U.S. crude for December delivery rose 50 cents to $79.18 a barrel by 12:32 p.m. EDT, after falling earlier in the day.
London Brent crude was up 34 cents at $77.60.
Oil prices have been taking cues from U.S. stock markets as investors gauge a recovery in the U.S. economy by the strength of third-quarter corporate earnings.
The Dow Jones industrial average and S&P 500 stock index both rose, led by oil companies, after BP Plc (BP.N: Quote, Profile, Research) reported better-than-expected quarterly results.
Data showed U.S. house prices rose for a fourth straight month. Continued...
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