Oil prices rose 3 percent on Tuesday tracking Wall Street higher despite gloomy economic data and swelling crude inventories in the United States. US crude rose $1.49 to settle at $49.90 a barrel, reversing direction after Monday's 7 percent slide. London Brent crude rose $1.24 to $49.23. The gains came as US stock prices rose, on track for their best month in six years, led by banks a”Right now, crude prices are up as Wall Street is gaining,” said Phil Flynn, analyst at Alaron Trading in Chicago. The gains were limited, however, by data showing US house prices plunged 19 percent in January, indicating the depth of the recession in the world's top energy consumer. Adding some downward pressure, US government inventory data to be released Wednesday morning was expected to show an increase in crude oil stockpiles that have already swelled to their highest since 1993. Industry group the Americareleased data Tuesday afternoon showing a 3.3-million-barrel increase in crude stockpiles. Oil has made a quarterly gain of more than 11 percent, prompted by rising stock markets and lower oil supplies as the Organization of the Petroleum Exporting Countries cuts production. The price is still down nearly $100 from the record high reached last year.
