The price of oil rose slightly Tuesday, following stocks and continuing a run-up that began two months ago.
Benchmark crude for March delivery rose 80 cents to finish at $96.66 on the New York Mercantile Exchange. Nymex floor trading was closed on Monday for the Presidents Day holiday in the U.S. The contract fell $1.45 on Friday.
Oil prices have been rising since mid-December, when oil traded around $87 per barrel. Analysts noted that investors have bought into oil markets speculatively in recent weeks on hopes for a stronger recovery in the global economy.
Stocks rose because of reports of a possible merger between Office Depot and OfficeMax, which investors took as a sign that more deals could be on the way.
Addison Armstrong, an analyst at Tradition Energy, noted that the latest trading report from the U.S. Commodity Futures Trading Commission showed that managers have boosted bets on rising oil prices by 4.4 percent for the week that ended Feb. 12.
Economic indicators have been mixed, however, showing many parts of Europe remain in recession and the U.S. only gradually recovering. That leaves crude oil prices vulnerable to a sell-off, according to analysts at Commerzbank.
In the U.S., a report on Tuesday showed that confidence among homebuilders slipped compared to January, as builders remain concerned about the sturdiness of the U.S. economy and the risk of rising unemployment.
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