LONDON (SHARECAST) - Crude oil futures rose above $74 a barrel on Monday, as investors cheered better than expected economic data.
Crude for March delivery rose $1.54 to settle at $74.43 a barrel in New York. Crude oil prices fell 2.4% last week on concern about weak demand but by Monday, traders took heart in the Institute for Supply Management’s manufacturing index in January which rose to 58.4 from 54.9 in December, beating the 55.5 expected by economists.
A separate report showed personal income increased 0.4% for December, better than forecasts of a 0.3% gain. However personal spending rose just 0.2% in December, less than predictions of a 0.3% increase.
Other factors pushing oil prices higher included colder weather moving back into the Northeast of the United States and reports about an attack on a Royal Dutch Shell pipeline in Nigeria over the weekend. The oil giant said it was forced to close down production at three of its stations in the West African country.
Gold for April delivery bounced $21.50 to $1,105.30 an ounce on the Comex division of the New York Mercantile Exchange.
Speculation that the dollar’s recent rally will run out of steam whipped up interest in the precious metal. Concern about the gigantic US budget deficit also sparked a wave of interest in oil and gold.
