US crude futures rose US$1.27 to US$54.47 (S$80.13) a barrel. --PHOTO: AFP
NEW YORK - OIL prices rose to their highest close of the year on Monday as investors bet the economic recession would end soon, paving the way for a recovery of ailing world energy demand.
US crude futures rose US$1.27 to US$54.47 (S$80.13) a barrel - the highest settlement since Nov 24. London Brent rose US$1.73 to US$54.58.
The gains were encouraged by stronger global equities markets and positive economic data in the United States, Europe and Asia that fed hopes the worst of the downturn was over.
A top official at the US Federal Reserve, Richmond Federal Reserve President Jeffrey Lacker, said on Monday that the recession was fading and that economic growth would resume later this year.
'The stock markets are up and there is the hope that we might be seeing some recovery,' said Dan Flynn, energy analyst at Alaron Trading in Chicago.
Weakness in the US dollar against the euro also supported greenback-denominated commodities markets.
Oil prices have bounced back from five-year lows just above US$30 hit this winter, boosted in part by deep Opec production cuts aimed at countering the first global decline in energy demand in a quarter century.
A Reuters survey on Friday showed Opec had delivered around 84 per cent of promised curbs of 4.2 million barrels per day since September, around its highest-ever level of output discipline.
Opec efforts to support the price have been in part offset by the impact of high inventories on land and large amounts of floating storage as traders have made use of a bearish market structure to stockpile oil. -- REUTERS
US crude futures rose US$1.27 to US$54.47 (S$80.13) a barrel - the highest settlement since Nov 24. London Brent rose US$1.73 to US$54.58.
The gains were encouraged by stronger global equities markets and positive economic data in the United States, Europe and Asia that fed hopes the worst of the downturn was over.
A top official at the US Federal Reserve, Richmond Federal Reserve President Jeffrey Lacker, said on Monday that the recession was fading and that economic growth would resume later this year.
'The stock markets are up and there is the hope that we might be seeing some recovery,' said Dan Flynn, energy analyst at Alaron Trading in Chicago.
Weakness in the US dollar against the euro also supported greenback-denominated commodities markets.
Oil prices have bounced back from five-year lows just above US$30 hit this winter, boosted in part by deep Opec production cuts aimed at countering the first global decline in energy demand in a quarter century.
A Reuters survey on Friday showed Opec had delivered around 84 per cent of promised curbs of 4.2 million barrels per day since September, around its highest-ever level of output discipline.
Opec efforts to support the price have been in part offset by the impact of high inventories on land and large amounts of floating storage as traders have made use of a bearish market structure to stockpile oil. -- REUTERS
Posts
0 comments:
Post a Comment