NEW YORK: Oil prices steadied near $79 a barrel on Tuesday as the market weighed gains in the dollar against strong US consumer confidence data and colder weather in top consumer the United States.
US consumer confidence improved more than expected in December, hitting a three-month high as job market pessimism eased and consumers’ expectations reached a two-year high, pushing up US stocks and giving an early lift to crude prices.
US crude for February delivery rose 11 cents to $78.88 a barrel at 2:11 p.m. EST (1911 GMT), after gains in the dollar sent crude off earlier highs of $79.39 a barrel. In London, Brent crude for February traded up 39 cents at $77.71 a barrel.
“The dollar has rallied, taking some of the wind out” of the early gains, said Peter Beutel, president of Cameron Hanover in New Canaan, Connecticut.
The US dollar climbed against the euro and yen as holiday-thin trading exacerbated price moves.
Oil markets have looked to the wider economy this year for signs of strength that could bolster flagging fuel demand.
Worries about the economy have at times prompted investors to pull cash from commodities.
US stocks gained modestly as the consumer confidence data offset the home price data.
Crude rose on Monday, boosted by colder US weather and tensions between Russian and Ukraine raised concerns about oil supplies to Europe.
Temperatures in the US Northeast — the world’s largest heating oil market — were expected to average below normal through Friday.