Forex: Oil Extends Gains On Stronger Economic Data

(RTTNews) - Oil prices held on to gains and sustained above $77 a barrel Wednesday, finding support in positive housing and industrial data from the US, which encouraged hopes of a faster economic recovery in the major consumer. But the gains were capped by a resurgent greenback.

Crude oil for delivery in March settled $0.32 higher at $77.33 per barrel in the New York Mercantile Exchange.



Traders are awaiting the release of weekly inventory data for further direction. The American Petroleum Institute is due to report its inventory update this afternoon, while an official report from the US Energy Department will be released on Thursday.

Meanwhile, the US Dollar reversed Tuesday's losses against its European counterpart after data showed housing starts and industrial output in the US exceeded analyst expectations.

Housing starts increased by a bigger-than-expected 2.8% in January to an annual rate of 591,000, according to a release from the US Commerce Department.

In a separate report, the US Federal Reserve said the country's industrial production grew 0.9% in January, topping analysts' forecasts for a 0.7% increase.