Oil rebounds on hopes of economic recovery

Crude prices rebounded on Tuesday as investors weighed U.S. economic recovery hopes against the rising dollar and disappointing consumer confidence data.

Light, sweet crude for December delivery gained 87 cents to settle at 79.55 U.S. dollars a barrel on the New York Mercantile Exchange.

Oil hold firm mainly on hopes that the upcoming GDP (Gross Domestic Product) data, due to released on Thursday, would show a rebound in the U.S. economy. According to analysts' estimates, the U.S. economy is going to expand by 3.3 percent in the third quarter.

However, oil's advance was capped by the fact that the dollar rose for the third day against most of its counterparts, reducing hedge appeal of commodities.

Meanwhile, U.S. consumer confidence fell sharply in October amid growing worries about rising unemployment, which also limited the rising momentum of oil prices.

In London, Brent Crude for December delivery rose 66 cents to settle at 77.92 dollars a barrel on the ICE Futures exchange.

Source:Xinhua