Oil rises above $69
Crude futures rebound along with Wall Street and on the back of a weak greenback.
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NEW YORK (Reuters) -- Oil rose to over $69 a barrel Tuesday as stronger-than-expected earnings results lifted equities and boosted optimism about the economy.
U.S. crude for September delivery rose $2.44 to settle at $69.19 a barrel with further support coming from the weaker dollar.
"We are just taking our cues from the S&P and the dollar," said Stephen Schork, editor of The Schork Report in Villanova, Pa.
Two major retailers, Home Depot (HD, Fortune 500) and Target (TGT, Fortune 500), beat Wall Street expectations on Tuesday, lifting markets.
The results offset government data that showed that U.S. housing starts and permits fell unexpectedly in July after increasing in June.
Investors were also eyeing U.S. oil inventory data set to be released later Tuesday and Wednesday.
An updated Reuters poll of analysts predicted crude stocks rose by 1.3 million barrels, the fourth weekly build in a row, as higher imports offset a slight increase in refinery activity.
Distillate stocks were seen up 600,000 barrels and gasoline stocks down 1.1 million barrels.
The Energy Information Agency will release its weekly inventory report Wednesday with analysts expecting more signs of weak U.S. demand. The American Petroleum Institute will release its inventory data Tuesday at 4:30 p.m. ET.
Traders were also keeping an eye on storms in the Atlantic Basin, although there was no immediate threat seen to U.S. oil installations in the Gulf of Mexico, home to a quarter of U.S. oil output and 15% of its natural gas production.
Forecasters said tropical rainstorm Ana may regain strength over the warm water of the eastern Gulf of Mexico later this week, but has little chance of becoming a hurricane over the next day or so as it crosses Haiti and Cuba.
Hurricane Bill, the first hurricane of the 2009 Atlantic season, headed west-northwest over open ocean Tuesday, but it was uncertain whether it could threaten the northeast U.S. coast, far from Gulf Coast oil installations, by Sunday. 
