Investing.com - An upbeat U.S. consumer confidence report offset softer-than-expected data on U.S. durable goods and sent oil prices firming on Tuesday by stoking hopes a more robust economy will consume more fuel and energy going forward.
Ongoing supply concerns chipped away the commodity's gains at times.
In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in December traded up 0.09% at $81.07 a barrel during U.S. trading, up from a session low of $80.37 a barrel and off a high of $81.65 a barrel.
The December contract settled down 0.01% at $81.00 a barrel on Monday.
Support for the commodity was seen at $79.44 a barrel, Monday's low, and resistance at $83.26 a barrel, last Tuesday's high.
The Conference Board reported earlier that its consumer confidence index jumped to 94.5 this month from 89.0 in September, boosted by a more favorable assessment of the current job market and business conditions.
Economists had expected the index to tick down to 87.0 this month, and the report left many investors concluding that while demand for goods and services in the U.S. remains cautious, consumers still remain upbeat over the U.S. economy and will ramp up spending soon.
The numbers offset lackluster data on durable goods.
The U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, decreased by 1.3% last month, disappointing expectations for a gain of 0.5%.
Orders for durable goods in August were revised to a decline of 18.3% from a previously reported drop of 18.4%.
Durable goods are typically products designed to last at three years and include trains, planes and automobiles.
Core durable goods orders, which are stripped of volatile transportation items and include items like household appliances, eased down by 0.2% in September, defying forecasts for a 0.5% gain. Core durable goods orders rose by 0.7% in August.
Orders for core capital goods, a key barometer of private-sector business investment, fell by 1.7% last month, worse than expectations for a 0.6% increase and after rising 0.3% in August.
Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in September, disappointing forecasts for a 0.7% gain, after rising 0.1% in the preceding month.
While demand for computers and machinery declined, a sign many firms may be holding off on updating equipment, demand for cars and trucks remained firm, which gave oil some support.
Still, the commodity came under some pressure due to ongoing concerns that the world is awash in crude to the point that supply is outstripping demand.
On Monday, U.S. financial institution Goldman Sachs cut its oil price forecast for WTI in the first quarter of next year by $15 to $75 a barrel.
The bank expects Brent prices to average $85 a barrel in the first three months of 2015, down from a previous estimate of $100.
Goldman analysts expect WTI to fall as low as $70 a barrel and Brent to $80 in the second quarter of 2015, when it expects oversupply to be most pronounced.
OPEC countries have hinted recently they may leave output quotes unchanged and have stressed the need to adapt to lower prices.
OPEC will hold its next meeting on Nov. 27.
Prices have fallen by over 20% in the last three months.
Separately, on the ICE Futures Exchange in London, Brent oil futures for December delivery were up 0.09% at US$85.91 a barrel, while the spread between Brent and U.S. crude contracts stood at $4.26.