Singapore: Oil was higher in Asian trade
on Monday as investors bought into commodities including crude on
the back of a weak dollar, analysts said.
New York's main contract, light sweet crude for
December delivery put on 71 cents to USD 77.06 a barrel.
Brent North Sea crude for January delivery gained 55
cents to USD 76.86.
"The US dollar has been relatively soft this morning
and I think that has been the main reason why we are seeing
oil prices recovering a little bit," said David Moore, a
Sydney-based commodities analyst with the Commonwealth Bank
of Australia.
A weak greenback usually translates into higher crude
prices because holders of stronger foreign currencies find it
cheaper to buy dollar-priced commodities including crude.
The dollar remained weak against the euro in Asia
trade today, trading at 1.4949 to the European unit compared
with 1.4911 in late US trading Friday.
Analysts said this week's release of US retail sales
and industrial production data for October in the world's
biggest economy would be closely watched by traders.
"The US economic data will be important for the
direction of oil prices," said Moore.
The United States is the world's biggest energy user
and a firm rebound in its economy is seen as crucial to
lifting oil demand which has declined since the onset of the
global slump.
Bureau Report
First Published: Monday, November 16, 2009, 10:16