WTI oil trading close to $79 as US data pleases markets

WTI oil prices are trading back near $79 a barrel as the latest set of US company data released today pushes oil prices up around three percent.

US Light crude oil futures for September 2010 delivery were at $78.79 a barrel, 18.45 GMT on the NYMEX.

Stock markets also jumped higher on Thursday after major economically sensitive companies, including UPS and 3M, reported strong revenues, easing investor concerns about future growth.

Oil prices moved higher as traders absorbed positive economic data out of the US and shrugged off Federal Reserve chief Ben Bernanke’s gloomy outlook.

Meanwhile, the dollar fell today as US corporate and housing reports supported equities and reduced demand for the perceived safety of the US dollar. The ICE Dollar Index which tracks the greenback against a basket of major currencies, sank to 82.557, compared to 83.298.

A weaker US dollar makes dollar priced oil cheaper for buyers using stronger currencies, and therefore tends to send oil prices higher.

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WTI oil trading close to $79 as US data pleases markets