Oil edges up in volatile Asian trade
Wednesday, 16 June 2010
SINGAPORE, June 15 (Commodity Online): Global oil prices advanced marginally in Asian trade but remained highly volatile on concerns over Euro Zone debt crisis.
Light sweet crude for delivery in July was seen trading at $75.18 a barrel at 11.30 am Singapore time while Brent crude for July delivery was at $75.31 a barrel in London.
Prices dropped in early trade as Greece's credit standing suffered another knock, which offset positive European industrial production numbers.
Spain admitted Monday that the European financial crisis is taking a toll on the country's banks, while credit ratings agency Moody's slashed Greek sovereign debt by four notches to junk status.
However the black gold creeps up on reports of increase in energy demand from emerging economies which offset negative reports over Europe crisis.
Rising economies like India and China accounts for much of the 1.7 million barrel a day growth in oil demand forecast by International Energy Agency for this year.
Demand from China, the world's second largest energy consumer, grew by 12.7 per cent in April year on year, the IEA said, and it is expected to remain robust.
Attention in the oil market was set to turn to weekly inventory reports from top consumer the United States.
On Monday, oil prices jumped as the dollar weakened after data showed an expansion of industrial production in the Euro zone, which is battling a budget-deficit crisis.
Euro zone industrial output jumped 0.8 per cent in April from March, nearly double the gain expected by analysts.
New York's main futures contract, light sweet crude for July, gained $1.34 to close at $75.12 a barrel. London's Brent North Sea crude for delivery in July climbed 85 cents to $75.20 a barrel.
Light sweet crude for delivery in July was seen trading at $75.18 a barrel at 11.30 am Singapore time while Brent crude for July delivery was at $75.31 a barrel in London.
Prices dropped in early trade as Greece's credit standing suffered another knock, which offset positive European industrial production numbers.
Spain admitted Monday that the European financial crisis is taking a toll on the country's banks, while credit ratings agency Moody's slashed Greek sovereign debt by four notches to junk status.
However the black gold creeps up on reports of increase in energy demand from emerging economies which offset negative reports over Europe crisis.
Rising economies like India and China accounts for much of the 1.7 million barrel a day growth in oil demand forecast by International Energy Agency for this year.
Demand from China, the world's second largest energy consumer, grew by 12.7 per cent in April year on year, the IEA said, and it is expected to remain robust.
Attention in the oil market was set to turn to weekly inventory reports from top consumer the United States.
On Monday, oil prices jumped as the dollar weakened after data showed an expansion of industrial production in the Euro zone, which is battling a budget-deficit crisis.
Euro zone industrial output jumped 0.8 per cent in April from March, nearly double the gain expected by analysts.
New York's main futures contract, light sweet crude for July, gained $1.34 to close at $75.12 a barrel. London's Brent North Sea crude for delivery in July climbed 85 cents to $75.20 a barrel.