U.S. oil prices rise along with stocks

Associated Press Published:

The price of U.S. oil was up nearly 1 percent Tuesday along with a rising stock market.

Global crude slipped, though, on the prospect of rising supplies from Libya, the North Sea, and Iran.

Benchmark U.S. oil for February delivery rose 70 cents to $92.50 a barrel in early afternoon trading in New York.

Brent crude, used to set prices for international varieties of crude used by many U.S. refineries, fell 41 cents to $105.56 in London.

"The overall outlook for oil pricing has taken on an increasingly mixed look with the two main crude benchmarks responding to differing influences," wrote energy analyst Jim Ritterbusch in a report Tuesday.

The U.S. stock market rose in part on retail sales that were stronger than expected. That could mean demand for fuel, which has been rising in the U.S. in recent months, may continue to grow.

Still, U.S. oil has fallen steadily since the beginning of the year because supplies of crude and fuels appear ample enough to offset rising demand. Tuesday's gain, if sustained, would be only the third time this month oil has risen.

Global supplies could still be on the rise, which could mean lower prices for international crude. Libyan crude production is beginning to ramp up after protests and unrest cut production late last year.

North Sea output is due to increase with the restart of the Buzzard oilfield.

An agreement Sunday between Iran and six world powers may enable Iran's oil industry, whose exports were severely limited by sanctions over its nuclear program, to sell more crude after the deal takes effect Jan. 20.

Later this week, investors will be monitoring new information on U.S. stockpiles of crude and refined products. Data for the week ending Jan. 10 is expected to show a draw of 1.6 million barrels in crude oil stockpiles and an increase of 1.7 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

The expected draw would be the seventh consecutive decline in U.S. crude oil inventories. The report from the Energy Department's Energy Information Administration -- the market benchmark -- will come out on Wednesday.

The average retail price of gasoline in the U.S. fell less than a penny to $3.31 per gallon Tuesday, according to AAA, OPIS and Wright Express. That's 8 cents higher than a month ago and less than a penny higher than it was a year ago.

In other energy futures trading in New York:

-- Wholesale gasoline was down 1 cent to $2.62 a gallon.

-- Natural gas rose 9 cents to $4.32 per 1,000 cubic feet.

-- Heating oil was flat at $2.94 a gallon.

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