London: Oil rose towards $79 a barrel yesterday, after sliding more than 2 per cent the previous session, as an upwards revision in US gross domestic product for the fourth quarter helped revive lacklustre sentiment.
The US economy grew faster than initially thought at 5.9 per cent versus 5.7 per cent in the fourth quarter, a government report showed yesterday, boosting expectations for fuel demand growth in the world's top energy consumer.
US crude for April delivery rose 74 cents to $78.91 a barrel by 1511 GMT after falling $1.83 on Thursday. Prices earlier rose more than $1 to a high of $79.34 a barrel, but then pared gains after sales of previously owned homes in the United States unexpectedly plunged in January.
ICE Brent crude for April rose 56 cents to $76.85 a barrel.
"The GDP number was positive and the crude market was getting a little oversold yesterday. Even with the terrible economic news earlier in the week — consumer confidence, housing stuff — equities have been quite resilient," said senior market strategist Richard Ilczyszyn at Lind-Waldock.
Oil markets have looked to equities and the broader economy for clues about the demand picture as the world economy pulls out of recession.
Prices have traded in a range between $69 and $84 a barrel since last October, but $80 a barrel is being reinforced as a key resistance level, analysts said.
Prices edged over $80 a barrel to hit a six-week high of $80.51 a barrel on Monday but have since retreated.
