* U.S. crude hovers below 24-month high
* Trading volumes light
* U.S. home prices, consumer confidence short of estimates
(Recasts, updates prices, market activity)
NEW YORK, Dec 28 (Reuters) - Oil prices rose 47 cents on
Tuesday, clawing back much of Monday's 51 cent loss and
settling within striking distance of a 24-month high struck
early the previous session.
U.S. crude found early support as the dollar slipped
against a basket of currencies. But crude gave back some gains
after economic data from the world's top energy consumer came
in weaker than expected.
As the day wore on, however, the currency and crude markets
diverged.
"Crude keeps closing above $90, so that might get us in a
new higher range," said Richard Ilczyszyn, senior market
strategist at Lind-Waldock in Chicago.
American consumer confidence unexpectedly deteriorated in
December, hurt by mounting worries about the job market,
according to a private report released by the Conference Board.
The data weighed on equities markets. []
Single-family home prices fell for a fourth straight month
in October, pressured by a supply glut, home foreclosures and
high unemployment, according to the Standard &
Poor's/Case-Shiller composite index. []
U.S. crude for February delivery <CLG1> settled 47 cents
higher at $91.47 a barrel at 2:32 p.m. (1932 GMT), a day after
touching $91.88, the highest crude price since October 2008.
In London, ICE Brent crude <LCOG1> settled 53 cents higher
at $94.38 a barrel.
U.S. January RBOB settled at $2.0546 a gallon, down 1.53
cents or 0.63 percent, while heating oil settled 0.77 cents
higher at $2.5243.
Copper and gold also found support from the weaker dollar,
which tends to bolster commodities denominated in the
greenback, and the two metals managed to hold onto those gains
even as the dollar gained in value. [] The Chinese
yuan rose after China announced a rate rise at the weekend as
the world's second-largest oil consumer strives to slow down
its economy.
"I think the market is pretty quiet on volume, but, that
said, this morning's price action seems to be more reflective
of a positive tone than a negative tone," said Michael Korn,
president of Skokie Energy in Princeton, New Jersey.
"I'm thinking it's more like day traders are playing it
from the long side," Korn added, explaining the generally
firmer tone to the market, along with the corresponding light
volumes.
Trading was extremely light, with total crude volumes just
over 173,000, well below the 30-day average of 600,000. RBOB
gasoline traded around 41,000 times and heating oil futures
changed hands near 44,000 times. The products volumes were less
than one-third of their 30-day averages.
"I think (oil is) being pulled in different directions,
with a definite upward bias," said Phil Flynn, an analyst with
PFGBest Research in Chicago.
"On one hand its commodity side wants to rally, but its
financial instrument side is being restrained because the stock
market is lower (due to U.S. consumer confidence data)."
Oil has rallied by 35 percent from lows struck in May, and
is up roughly 15 percent from the end of 2009.
"It's always interesting when markets diverge," said Tim
Evans, energy analyst for Citi Futures Perspective in New York,
explaining why the crude market slightly bucked the trend in
following the movement in the dollar and equities markets
Tuesday.
Evans suggested that the crude and refined products markets
were trading on expectations of a build in gasoline stocks and
draws in heating oil and crude stocks, rather than any other
economic influences.
The weekly data releases from the American Petroleum
Institute will be released Wednesday, while U.S. Energy
Information Administration's weekly report will be issued
Thursday morning. Figures published last week showed a big drop
in crude inventories, although they were still higher than a
year ago.
A rally across financial markets took hold in earnest
around September, spurred by the U.S. Federal Reserve's latest
round of quantitative easing, a weakened dollar and rising
demand.
"Data in recent weeks have been supportive of the stocks
and commodity markets globally. The U.S. will avoid a
double-dip. The Asian region including Japan looks a little bit
better, with its industrial production finally showing an
increase," said David Cohen, director of Asian Economic
Forecasting at Action Economics.
"I think a lot of people are expecting prices to turn
higher towards $100 a barrel next year."
The Organization of Arab Petroleum Exporting Countries,
some of whose members also belong to OPEC, met in Cairo at the
weekend, when leading exporter Saudi Arabia reiterated its
preference for a $70-$80 price range. Others said $100 would be
fair and the global economy could withstand it.
Oil has also found some support from cold weather across
the United States and Europe. A blizzard across the U.S. East
Coast this week was viewed as mixed for markets as it bolstered
heating demand but hit travel consumption by shutting airports
and slowing road travel.
Another factor some traders were looking at was the
February/March crude spread on NYMEX, which was in a 74 cents
contango on Tuesday.
"Minus 74 cents on that spread is not indicative of a tight
market," said Skokie Energy's Korn.
(Reporting by Jeffrey Kerr and Matthew Robinson in New York;
Robert Gibbons in Houston; Barbara Lewis in London; Seng Li
Peng in Singapore; Editing by David Gregorio)
