Oil shows signs of recovery in Asia
Tuesday, 9 February 2010
SINGAPORE, Feb 8 (Commodity Online): Global oil prices gained some momentum in Asian trade Monday after ended last week at the lowest level in nearly two months.
Light sweet crude for March delivery was seen trading at $71.68 a barrel at 11.30 am Singapore time while Brent crude was at $69.99 a barrel at the same time.
Analysts said energy demand increased in the US following harsh winter in the Mideast.
However mixed signals from the US labour market and growing anxiety over fiscal problems in Europe continued to cast a pall over sentiments and limited oil's gains.
On Friday, oil prices ended at the lowest level in nearly two months, weighed down by a stronger dollar and persistent doubts about the health of the global economy.
Crude prices have now dropped more than 14 per cent since cresting at a 15-month high of $83.18 a barrel on January 6.
March delivery fell $1.95 to settle at $71.19 a barrel on the New York Mercantile Exchange after touching day's low of $69.50 a barrel. Brent crude gave up $2.54 to settle at $69.59 on the ICE futures exchange.
Oil prices have lost nearly 10 per cent this year, dragged down by data showing bulging fuel stockpiles in the US despite cold weather, concerns about slower Asian demand if China further tightens its monetary policy, and more recently jitters about Europe's financial system.
Analysts said oil prices are likely to remain volatile this week, as movements in the US dollar and developments on Europe's fiscal problems remain as the key focal points.
Light sweet crude for March delivery was seen trading at $71.68 a barrel at 11.30 am Singapore time while Brent crude was at $69.99 a barrel at the same time.
Analysts said energy demand increased in the US following harsh winter in the Mideast.
However mixed signals from the US labour market and growing anxiety over fiscal problems in Europe continued to cast a pall over sentiments and limited oil's gains.
On Friday, oil prices ended at the lowest level in nearly two months, weighed down by a stronger dollar and persistent doubts about the health of the global economy.
Crude prices have now dropped more than 14 per cent since cresting at a 15-month high of $83.18 a barrel on January 6.
March delivery fell $1.95 to settle at $71.19 a barrel on the New York Mercantile Exchange after touching day's low of $69.50 a barrel. Brent crude gave up $2.54 to settle at $69.59 on the ICE futures exchange.
Oil prices have lost nearly 10 per cent this year, dragged down by data showing bulging fuel stockpiles in the US despite cold weather, concerns about slower Asian demand if China further tightens its monetary policy, and more recently jitters about Europe's financial system.
Analysts said oil prices are likely to remain volatile this week, as movements in the US dollar and developments on Europe's fiscal problems remain as the key focal points.