Oil prices above $68 in Asian trade
Wednesday, 10 June 2009
SINGAPORE, June 9 (AFP): Oil prices held above 68 dollars a barrel in Asian trade today after rebounding from overnight falls amid hopes of a recovery for the ailing global economy.
In morning trade, New York's main futures contract, light sweet crude for delivery in July, was up 56 cents to 68.65 dollars a barrel. The contract touched 70.32 dollars last Friday, its highest level since November 4.
Brent North Sea crude for July delivery advanced 57 cents to 68.45 dollars.
Data indicating that the worst may be over for the recession- battered US economy, the biggest in the world, have been stoking hopes for a rebound from the current global crisis.
US employment figures released Friday said the number of job losses slowed to a better-than-expected 345,000 in May.
The report, seen as one of the best indicators of economic momentum in the United States suggested that the pace of massive job cuts is easing, a positive sign for the US economy, the world's biggest energy consumer.
"The bounce in commodity prices is likely to be sustained while... expectations of recovery continue to build," London- based consultancy Capital Economics said in a note.
It cautioned however that "disappointment at the strength of the economic expansion should take the heat out of the latest rally."
Some analysts said oil prices might have climbed too rapidly. "I think there are still demand issues with this high unemployment rate continuing over the next months," said Andy Lipow of Lipow Oil Associates.
After plunging from record highs above 147 dollars last July on supply concerns, oil prices touched multi-year lows in December, at one point nearing 32 dollars a barrel, as the economic slowdown crushed demand for energy.
In morning trade, New York's main futures contract, light sweet crude for delivery in July, was up 56 cents to 68.65 dollars a barrel. The contract touched 70.32 dollars last Friday, its highest level since November 4.
Brent North Sea crude for July delivery advanced 57 cents to 68.45 dollars.
Data indicating that the worst may be over for the recession- battered US economy, the biggest in the world, have been stoking hopes for a rebound from the current global crisis.
US employment figures released Friday said the number of job losses slowed to a better-than-expected 345,000 in May.
The report, seen as one of the best indicators of economic momentum in the United States suggested that the pace of massive job cuts is easing, a positive sign for the US economy, the world's biggest energy consumer.
"The bounce in commodity prices is likely to be sustained while... expectations of recovery continue to build," London- based consultancy Capital Economics said in a note.
It cautioned however that "disappointment at the strength of the economic expansion should take the heat out of the latest rally."
Some analysts said oil prices might have climbed too rapidly. "I think there are still demand issues with this high unemployment rate continuing over the next months," said Andy Lipow of Lipow Oil Associates.
After plunging from record highs above 147 dollars last July on supply concerns, oil prices touched multi-year lows in December, at one point nearing 32 dollars a barrel, as the economic slowdown crushed demand for energy.