Oil rises to five-month high on economic optimism

• Source: xinhua
• [09:17 May 05 2009]
• Comments

Crude oil rose for a fourth straight session and reached a five-month high on Monday, as upbeat economic data boosted energy investors' hope in demand recovery.

Light, sweet crude for June delivery rose 1.27 US dollars to settle at 54.47 dollars a barrel on the New York Mercantile Exchange, which is the highest closing price since Nov. 24, 2008.

Oil obtained support from positive reports from pending home sales and construction spending. The National Association of Realtors said its pending home sales index rose 3.2 percent to 84.6 in March, far surpassing economists' expectation of 82.1.

The US Commerce Department reported that construction spending rose 0.3 percent in March after dropping for five straight months. Economists had expected the reading to drop 1.5 percent.

In London, Brent crude for June delivery rose 1.70 dollars to 54.55 dollars a barrel on the ICE Futures Exchange.