Oil prices rose toward $80 a barrel this evening after three days of declines. Investors were encouraged by strong company results and expectations of further falls in US fuel stockpiles. US crude rose 50 cents to $79.18 a barrel, while London Brent was up 34 cents at $77.60.
Oil prices have been taking cues from US stock markets as investors gauge a recovery in the US economy by the strength of third-quarter corporate earnings.
A stronger economy may lift fuel demand at a time when refiners have been operating at lower than normal rates. US fuel stocks are likely to have fallen further last week, according to analysts ahead of the US government's weekly inventory report Wednesday.
Oil rose on Tuesday in spite of a strengthening US dollar, which gained more than 0.2% against a basket of other currencies, rising from near a 14-month low. Crude and the dollar have recently been moving in an inverse price relation. When the dollar strengthens, crude becomes more expensive for holders of other currencies.
