Oil rebounded after the biggest loss in two months
rebounded after the biggest loss in two months as U.S.
service industries expanded at a better- than-expected pace in January,
signaling growth in 90 percent of the U.S. economy and stronger demand
advanced as much as 0.9 percent as the Institute for Supply Management’s index
non-manufacturing businesses reached 55.2, beating the estimate of economists. European
services output also shrank less than initially estimated last month. The U.S. and Europe
together account for more than a third of global oil consumption.
expanded at about the same pace in January as in December, when the index
reached a 10-month high of 55.7, the Tempe, Arizona-based ISM reported. Services
are poised to benefit as manufacturing emerges from a slump in the second half
of 2012. The ISM’s factory gauge reached a nine- month high of 53.1 in January, the group
said last week.
Readings above 50 indicate expansion and
those below 50 indicate contraction.
In Europe, the service index rose to 48.6 in January, above an
initial estimate of 48.3, according to London-based Markit Economics. The gauge
has shown a contraction for 12 months.
Intermediate crude for March delivery to $97.06 a barrel on the New York Mercantile
Exchange. Prices dropped the most since Dec. 6 yesterday. Prices have gained
5.3 percent this year.
for March settlement climbed $1.16, or 1 percent, to $116.76 on the
London-based ICE Futures Europe exchange.