World Business

Oil rises toward $87 on recovery hope

(Xinhua)
Updated: 2010-04-07 15:51

NEW YORK: Oil prices continued to rise on Tuesday as market remained positive about economic recovery and investors expect a draw in this week's crude inventory report.

Crude rallied for the sixth consecutive session as market sentiment remained upbeat on prospect of economic recovery.

Latest data showed that US payrolls posted biggest gains in three years in March, while service sector grew at its fastest pace in nearly four years and pending home sales surprisingly jumped more than eight percent.

Investors are waiting for Energy Department's weekly inventory report which is due on Wednesday. Analysts anticipated that crude supplies will drop about 1 million last week.

Light, sweet crude for May delivery gained 22 cents to settle at $86.84 a barrel on the New York Mercantile Exchange. Crude futures rose above 87 dollars a barrel during trading, the first time since October 2008.

In London, Brent crude for May delivery rose 35 cents to $86.23 a barrel on the ICE Futures Exchange.