Oil prices start the week trading higher on US data

Oil prices are trading slightly higher on Monday in Asia, with Brent crude oil futures taking a lead to a fresh eighteen month high, as manufacturing and home sales data in the US buoyed hopes of a sustained economic rebound in the world’s top energy user.

US Light crude oil futures for June delivery rose 16 cents to $85.28 a barrel by (06.22 GMT) on the NYMEX, while in London, Brent crude oil futures rose 25 cents to $87.50 a barrel on the ICE Futures Exchange.

Traders awaited cues from US April consumer confidence data, due out on Tuesday, as well as the outcome of the US Fed’s 2 day policy setting meeting starting the same day. Analysts widely expected the Fed to keep interest rates near zero and stick to its pledge of low borrowing costs for an extended period to foster the US recovery.

“The economic health of the US is getting better,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. “The positive economic data has supported the increasing confidence among investors, and that’s bullish for oil prices.”

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