Crude prices rebounded on Tuesday as U.S. economic data came in beating expectations and the greenback weakened against a basket of currencies.
U.S. retail sales in May fell for the first time in 11 months, but the drop of 0.2 percent was less than expected, easing the concerns about recovery slowdown and injecting optimism into crude markets.
In May, the U.S. PPI growth eased to 0.2 percent from 0.8 percent in April, the slowest pace in 10 months as the prices of food and energy cooled. Slowing inflation was regarded as a boost for consumer spending.
In another big oil consumption country China, the economic data came in mixed. The industrial production for May rose 13.3 percent compared to the same period 2010, slightly higher than economists' expectations and the retail sales were 16.9 percent above the year- ago period. But its CPI grew 5.5 percent in May, showing rising inflation pressure and triggering another round of bank reserve ratio hike.
On Tuesday, the dollar index dipped about 0.2 percent, making oil less expensive to investors holding foreign currencies.
Besides, the Wall Street investing bank Goldman Sachs said in a note to clients released on Tuesday that the recent fall of crude oil has generated a buying opportunity.
Light, sweet crude for July delivery rose 2.07 dollars, or 2.13 percent to settle at 99.37 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for July delivery gained and last traded around 120 dollars a barrel.
