Dallas: Crude oil rose to a five-week high after an index of home prices in 20 US cities climbed, indicating that the economy may be rebounding.
Oil advanced for a fifth consecutive day, the longest rally since October, as the S&P/Case-Shiller home-price index increased 0.4% in October from the previous month on a seasonally-adjusted basis.
“It’s a sign that the bottom has been met and the worst is over,” said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky.
Crude oil for February delivery rose 52 cents, or 0.7%, to $79.29 a barrel at 9.13am on the New York Mercantile Exchange. Earlier, it touched $79.39, the highest since 23 November.