Crude prices gain on upbeat U.S. consumption data

Crude prices advanced Monday as a government report showed U.S. consumer spending increased in August.

U.S. personal income rose 0.3 percent in August, while personal consumption expenditure gained 0.5 percent, said the U.S. Commerce Department, matching analysts' expectations and signaling a positive momentum in the U.S. economy.

The U.S. pending home sales index, a forward looking indicator based on contract signings, fell 1.0 percent to 104.7 in August from 105.8 in July, but the index still remains at the second- highest level over the past year, said the National Association of Realtors.

According to the third estimate released by the Commerce Department Friday, U.S. real gross domestic product (GDP) increased at an annual rate of 4.6 percent in the second quarter of 2014, marking the fastest growth rate since late 2011.

Moreover, the Thomson Reuters/University of Michigan's final reading of the consumer sentiment index released Friday climbed to 84.6 in September from a final August reading of 82.5.

Traders thought that the U.S. economy looks bullish and the strong consumption will support the oil prices.

Investors were also expecting a string of major economic data due out later this week, including the closely-watched U.S. nonfarm payroll report for September scheduled for Friday.

Light, sweet crude for November delivery moved up 1.03 U.S. dollars to settle at 94.57 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery gained 20 cents to close at 97.2 dollars a barrel.