WTI crude oil trading over $87 as US stock market rises

WTI crude oil is trading back over $87 a barrel early on Tuesday morning as the US stock market rode higher yesterday on news of a rebound in US consumer spending, easing concerns about another recession in America.

Latest WTI Oil Price

US Light crude oil futures for October 2011 delivery was trading at $87.56 a barrel, 04.25 GMT this morning in electronic trading on the NYMEX. The contract closed of Monday’s trading session at $87.53.

US Consumer Spending

Consumer spending rose 0.8 per cent in July, following a 0.1 per cent dip in June, the US Commerce Department said. It was the latest in a series of reports that indicated the economy improved last month, which could strengthen demand for oil and gasoline.

Wall Street Climbs after Irene

The US stock market surged on Monday as hurricane Irene was not as bad as previously estimated, with the Dows jumping over 250 points and the NASDAQ increasing over 3 percent.

Crude oil prices in recent months have closely followed major US stock indexes, which many oil market participants have come to see as barometers for sentiment about the broader economic outlook.

The tepid recovery in the US has prompted a selloff in crude oil and equities this summer, with NYMEX WTI crude oil futures coming off a high of nearly $115 a barrel, a level reached in May.

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WTI crude oil trading over $87 as US stock market rises