Oil prices rise on economic data

Oil prices extended rally Friday on upbeat U.S. economic data as well as positive performance in U.S. commodity markets. U.S. consumer confidence surged to a six-year high in May thanks to a rising stock market and cheaper gas prices, the monthly Thomson Reuters/University of Michigan index of consumer sentiment reported Friday. The preliminary reading of the consumer sentiment rose to 83.7 in May from 76.4 in the previous month, the highest since July 2007 and far above economists' expectation of 77.9. The index gauging consumer expectations for six months from now, which projects more closely the direction of consumer spending, climbed to 74.8 in May from 67.8 in April. Meanwhile, the Conference Board's index of leading indicators in April rose 0.6 percent, also beating a 0.3-percent increase of economists' estimates. The index dropped 0.1 percent in March, following a 0.5-percent gain for each of the previous two months. The better-than-expected economic data boosted growing optimism about the economy of the United State, the world's largest oil consumption country. Light, sweet crude for June delivery gained 86 cents, or 0.9 percent, to settle at 96.02 dollars a barrel on the New York Mercantile Exchange. Brent for July delivery went up 84 cents, or 0.81 percent, to close at 104.64 dollars a barrel.