Singapore: Oil surged back near 70 dollars in Asian trade on Wednesday on better retail sales in the United States and bargain-buying following recent price falls.
New York's main futures contract, light sweet crude for
delivery in September, was up 79 cents to USD 69.98 a barrel
in morning trade.
Brent North Sea crude for October delivery gained 44
cents to USD 72.81.
Crude prices rallied as traders returned to the market
following a slump that saw oil dip well below the
psychological 70-dollar level, analysts said.
"It's the same old story," said Tony Nunan, an energy
risk manager at Mitsubishi Corp in Tokyo.
"When we have a large drop (in prices), it seems that
people come in the next day (and buy) based on the economic
recovery story."
Nunan said better-than-expected performances posted by
major US retailers such as DIY firm Home Depot Inc also helped
boost prices as it was seen as a sign of improving US consumer
confidence.
Home Depot raised its forecast for fiscal 2009 after
reporting a less-than-expected 7.2 percent decrease in
earnings in the second quarter compared to the same period
last year.
Bureau Report
First Published: Wednesday, August 19, 2009, 10:49