Oil hovers near $78 as US stockpiles tumble
Friday, 1 October 2010
SINGAPORE, sept 30 (Commodity Online): World oil prices hovered near $78 a barrel mark in Asian trade Thursday after reports of decline in US crude stockpiles amid weak dollar.
Light sweet crude for November delivery was seen trading at $77.87 a barrel at 12.00 noon Singapore time while Brent crude was at $ 80.99 a barrel in London.
US Energy Information Administration Wednesday said country's crude inventories declined by 475,000 barrels for the week ending September 24, more than forecast by most analysts.
Analysts said apart from declines in stockpiles, a weak dollar also aided the black gold as it fell to an eight-month low against a basket of currencies. A weaker dollar bolsters the appeal of commodities as an alternative investment.
For September, the contract has climbed 8.3 per cent, the biggest gain since February, and is headed for a five-per cent rise for the third quarter.
Futures are headed for their biggest monthly gain in seven and the biggest quarterly increase since December.
On Wednesday, prices surged. New York's main contract, light sweet crude for November delivery ended at $ 77.86 a barrel, after briefly touching its highest level since August 11 at $78.13 a barrel.
London's Brent North Sea crude for November closed $ 80.77 a dollar.
Light sweet crude for November delivery was seen trading at $77.87 a barrel at 12.00 noon Singapore time while Brent crude was at $ 80.99 a barrel in London.
US Energy Information Administration Wednesday said country's crude inventories declined by 475,000 barrels for the week ending September 24, more than forecast by most analysts.
Analysts said apart from declines in stockpiles, a weak dollar also aided the black gold as it fell to an eight-month low against a basket of currencies. A weaker dollar bolsters the appeal of commodities as an alternative investment.
For September, the contract has climbed 8.3 per cent, the biggest gain since February, and is headed for a five-per cent rise for the third quarter.
Futures are headed for their biggest monthly gain in seven and the biggest quarterly increase since December.
On Wednesday, prices surged. New York's main contract, light sweet crude for November delivery ended at $ 77.86 a barrel, after briefly touching its highest level since August 11 at $78.13 a barrel.
London's Brent North Sea crude for November closed $ 80.77 a dollar.