Crude prices top $60, then dip on housing data

COLUMBUS, Ohio -- Energy prices gave up early gains Tuesday with new data suggesting that any economic rebound that might spark demand for gas or other fuels may take some time.

Benchmark crude for June delivery rose 5 cents to $59.08 a barrel on the New York Mercantile Exchange after hitting as high as $60.48. With the June contract expiring Tuesday, however, most traders were focused on the July contract, which fell 12 cents to $59.48.

The Commerce Department said construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units, the lowest pace on records going back a half-century.

Economists had expected home construction to post a modest increase in April as a sign that the worst collapse in housing activity in the post-World War II period was drawing to a close.

Energy prices have a tie to markets like housing in that it can serve as an indicator of consumer spending. In recent months, almost all indicators, from manufacturing activity to consumer confidence, have all pointed to diminished spending on energy.

"The housing starts is kind of a stark reminder that there are still problems out there," said Phil Flynn of Alaron Trading Corp.

That had directly impacted consumers where they can see it: at the pump.

Oil and gas companies have been slashing production because prices have fallen so far.

While compared to last year prices are still low, they have begun to creep upward in recent weeks because less gasoline and crude is being produced.

Oil and gas imports are down, too.

Every day this month, retail gas prices have gone up.

Prices edged up at the pump again overnight, climbing 0.3 cents to $2.314 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. That is 6.6 cents higher than a week ago and 25.7 cents higher than a month ago, but $1.48 a gallon lower than a year ago.

Energy prices may move Wednesday when the government reports how much crude and gasoline is now in storage.

Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., are expecting stocks, which are at 19-year highs, to fall for a second consecutive week. Analysts also are looking for gasoline stocks to fall.

In other Nymex trading, gasoline for June delivery fell less than a penny to $1.7536 a gallon and heating oil also fell less than a cent to $1.4682 a gallon. Natural gas for July delivery fell 16.5 cents to $4.10 per 1,000 cubic feet.

Brent crude fell 72 cents to $57.75 on the ICE Futures exchange.