US Light oil trading up at $77 on brighter economic outlook

US Light oil prices climbed over three percent in trading on Tuesday, extending strong day earlier gains as the global market appeared more optimistic about a brighter economic outlook and crude oil demand.

NYMEX Light crude oil futures for delivery in March, jumped $2.80 dollars to close at $77.23 a barrel, while in London, Brent crude oil futures for March surged $2.95 dollars to settle at $76.06 a barrel.

“This is about the improving economic mood this week,” said Phil Flynn at PFG Best. “We’ve had a strong stock market the last couple of days (and) a strong (US) manufacturing number yesterday seems to suggest that demand for energy is going to be strong.”

“And then you have cold weather, a fire in a refinery,” he added. Flynn said that prices also gained a boost from short-covering ahead of the weekly US government’s energy inventories report on Wednesday.

The market closely watches the weekly Department of Energy report on petroleum stockpiles in the US for clues on demand in the world’s biggest energy consuming nation.

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