Oil recovers in Asia as dollar dips
Wednesday, 20 January 2010
SINGAPORE, Jan 19 (Commodity Online): Global oil prices recovered in Asian trade Tuesday as the dollar weakened increasing the appeal of commodities as an alternative investment.
Light sweet crude for February delivery was seen trading at $78.41 a barrel at 12.00 noon Singapore time while Brent crude was at $77.15 a barrel at the same time.
On Monday, February delivery fell $0.34 to $77.66 a barrel and Brent North Sea crude for February delivery was down $0.34 to $76.77 a barrel.
The February contract, which closed at $78 a barrel on January 15, expires Wednesday. The more widely traded March futures gained as much as 66 cents, or 0.8 per cent, to $79.03.
The black gold also gained on forecast China's imports may rise 15 per cent this year as the country starts building the second phase of its strategic reserves, analysts said.
The dollar fell versus 12 of its 16 major counterparts. The dollar traded at 90.49 yen from 90.78 Monday in New York after earlier falling to 90.46, the weakest since December 21. The US currency was at $1.4389 per euro from $1.4384.
Meanwhile, the International Energy Agency Friday said oil demand in 2010 would be sluggish in the developed world, with emerging markets accounting for any increases.
Light sweet crude for February delivery was seen trading at $78.41 a barrel at 12.00 noon Singapore time while Brent crude was at $77.15 a barrel at the same time.
On Monday, February delivery fell $0.34 to $77.66 a barrel and Brent North Sea crude for February delivery was down $0.34 to $76.77 a barrel.
The February contract, which closed at $78 a barrel on January 15, expires Wednesday. The more widely traded March futures gained as much as 66 cents, or 0.8 per cent, to $79.03.
The black gold also gained on forecast China's imports may rise 15 per cent this year as the country starts building the second phase of its strategic reserves, analysts said.
The dollar fell versus 12 of its 16 major counterparts. The dollar traded at 90.49 yen from 90.78 Monday in New York after earlier falling to 90.46, the weakest since December 21. The US currency was at $1.4389 per euro from $1.4384.
Meanwhile, the International Energy Agency Friday said oil demand in 2010 would be sluggish in the developed world, with emerging markets accounting for any increases.