Oil rebounds after G20 vows to spur global growth
Singapore: Oil prices rebounded in Asian trade Monday as the world`s biggest economies vowed to spur global growth by more than USD 2 trillion over five years.
New York`s main contract, West Texas Intermediate (WTI) for April delivery, gained 27 cents to USD 102.47 in afternoon trade, while Brent North Sea crude for April rose 19 cents to USD 110.04.
"The G20 pledging a two percent (percentage points) growth over a five-year period has provided some positive sentiments over the growth in the medium term," Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.
"The the growth target, which also reflected USD 2 trillion in real value terms, will support oil prices," he said, noting the G20`s shift away from austerity as economic recovery takes hold.
After their Sunday meeting in Sydney, finance ministers and central bank governors from the Group of 20, which accounts for 85 percent of the world`s economy, issued a statement to drive "a return to strong, sustainable and balanced growth in the global economy".
The International Monetary Fund has said the strategy would add half a percentage point to global growth annually over four years starting next year.
The fund currently projects growth of 3.7 percent this year and 3.9 percent in 2015.
Crude oil prices are also expected to be supported by another bout of severe winter weather forecast across much of the US, boosting demand for heating fuel.
Chua said that the persistent cold weather has helped WTI crude to "find a floor above USD 100" a barrel.