Investing.com - Oil futures traded modestly higher in the early part of Tuesday’s Asian session on the back of some good U.S. economic news and escalating tensions in the Middle East.
On the New York Mercantile Exchange, light, sweet crude futures for August delivery rose 0.21% to USD98.24 per barrel in Asian trading Tuesday after settling up 0.28% at USD98.34 a barrel on Monday.
Crude got a lift from supportive news out of the U.S. real estate market. In U.S. economic news out Monday, the New York Federal Reserve said its Empire State general business conditions index fell to 3.05 in April from 9.24 in March. Economists expected a drop to 7. New orders dropped to 2.20 from 8.18.
The National Association of Home Builders/Wells Fargo builder sentiment index for June jumped to 52 from 44 last month. That was the biggest monthly increase since 2002. Readings above 50 are considered positive. Sales of new homes in the U.S. have risen 29% this year.
Elsewhere, eports that the U.S. will arm Syrian rebels in wake of allegations that government forces have used chemical weapons during the country's internal conflict sent oil prices gaining.
Both Syria and its ally Russia strongly denied the accusations, and while Syria is not a major producer of crude, nearby neighbors such as Iran are, and fears of regional tensions bolstered oil prices.
Still, trading was cautious ahead of the start of the Federal Reserve’s two-day meeting, which starts later today. Any signs that the central bank is about to taper its USD85 billion per month asset-buying program could pressure oil, but that tapering could be a sign that the Fed believes the U.S. economy is improving.
That could be a positive for crude because the U.S. is the world’s largest oil consumer.
Meanwhile, Brent for August delivery inched up 0.08% to USD105.71 per barrel on the ICE Futures Exchange.
On the New York Mercantile Exchange, light, sweet crude futures for August delivery rose 0.21% to USD98.24 per barrel in Asian trading Tuesday after settling up 0.28% at USD98.34 a barrel on Monday.
Crude got a lift from supportive news out of the U.S. real estate market. In U.S. economic news out Monday, the New York Federal Reserve said its Empire State general business conditions index fell to 3.05 in April from 9.24 in March. Economists expected a drop to 7. New orders dropped to 2.20 from 8.18.
The National Association of Home Builders/Wells Fargo builder sentiment index for June jumped to 52 from 44 last month. That was the biggest monthly increase since 2002. Readings above 50 are considered positive. Sales of new homes in the U.S. have risen 29% this year.
Elsewhere, eports that the U.S. will arm Syrian rebels in wake of allegations that government forces have used chemical weapons during the country's internal conflict sent oil prices gaining.
Both Syria and its ally Russia strongly denied the accusations, and while Syria is not a major producer of crude, nearby neighbors such as Iran are, and fears of regional tensions bolstered oil prices.
Still, trading was cautious ahead of the start of the Federal Reserve’s two-day meeting, which starts later today. Any signs that the central bank is about to taper its USD85 billion per month asset-buying program could pressure oil, but that tapering could be a sign that the Fed believes the U.S. economy is improving.
That could be a positive for crude because the U.S. is the world’s largest oil consumer.
Meanwhile, Brent for August delivery inched up 0.08% to USD105.71 per barrel on the ICE Futures Exchange.