NEW YORK, Dec. 23 (UPI) -- A U.S. Commerce Department revision of more than 1 percent growth for the U.S. economy helped boost struggling oil prices in Tuesday's trading session.
The Commerce Department issued long-awaited figures on economic growth from July-September, showing growth at a 5 percent annual rate for the fastest clip in more than a decade. Strong consumer spending and business investments prompted the Commerce Department to revise its third-quarter numbers by 1.1 percent.
West Texas Intermediate, the U.S. benchmark price for crude oil, gained 1.3 percent in early Tuesday's session to trade at $56 for the February contract.
Crude oil prices are still trading in a bear market, off close to $50 per barrel from their June values. Prices fell Monday after Saudi Arabia signaled it was leaving production levels static despite the low price of crude oil.
Tuesday's bounce in the U.S. economy follows word from the International Monetary Fund that low oil prices are seen as "a shot in the arm for the global economy."
Economists Rabah Arezki and Olivier Blanchard wrote on an IMF blog Monday that oil producers will take in less revenue under the current scenario, though gains will be felt elsewhere.
"We find a gain for world gross domestic product between 0.3 and 0.7 percent in 2015, compared to a scenario without the drop in oil prices," they said.
For producers, however, the pain is real. Prices are at a point where some companies are trimming investments.
Harold Hamm, chief executive officer at U.S. shale giant Continental Resources, said Monday the company was revising its budget in a way that "prudently aligns our capital expenditures to lower commodity prices."
The IMF economists said they expected oil prices to recover, but remain lower than recent trends toward the $100 per barrel mark.
Brent, the global price index, gained nearly 1.4 percent in early Tuesday trading to trade at $60.94 per barrel for February delivery.
