Crude oil futures gained on Tuesday in reaction to stronger US stock markets. Crude oil futures for November delivery surged 2.3 percent or $1.96 to settle at $88.34 per barrel on New York Mercantile Exchange. Energy analyst, Timothy Evans from Citi Futures Perspective commented, “Market sentiment continues to be closely linked with the S&P 500 Index”

Earlier oil prices had bearish sessions in reaction to sluggish economic growth in China. As per the latest figure of National Bureau of Statistics, China’s gross domestic product increased to 9.1 percent as compared to last year however was below than second quarter’s GDP growth rate of 9.5 percent.

London’s Brent crude futures contract for December delivery gained $0.99 to $115.15 per barrel on ICE Futures exchange. Inventories also decreased which further added to the demand of crude oil. According to the American Institute of Petroleum, crude oil inventories declined 3.1 million barrels for the week ended October 14^th, 2011. Analysts were hoping for increase in crude oil inventories by 1.75 million barrels. Distillate stockpiles which include diesel and heating oil declined 2.2 million barrels while analysts forecasted 1.1 million barrels.

Gasoline stockpiles fell by 1.6 million barrels against the expected decline of 1.1 million barrels for the week. Gasoline futures contract for November delivery remained unchanged at $2.75 per gallon while heating oil for the same month delivery gained 0.5 percent or $0.01 to $3.03 per gallon. Natural gas futures contract for November delivery slipped 3.7 percent or $0.14 to $3.55 per million British thermal units.