West Texas Intermediate and Brent crudes advanced for the first time in three days after a report showed that confidence among U.S. consumers rose in October to a seven-year high as gasoline prices dropped.
The Conference Board’s index climbed to 94.5 this month, the highest since October 2007, from a September reading of 89 that was stronger than initially estimated, the New York-based private research group said today. WTI prices have slipped 11 percent this month on signs that global oil production is growing faster than demand for fuel.
“The consumer confidence numbers were very encouraging,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone. “It’s another sign that the U.S. economy is looking strong. A major reason for the rise in confidence was probably the drop in gasoline prices.”
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