Oil Up in Asian Trade

Monday, October 12, 2009 at 4:41 pm

SINGAPORE : Oil prices rose in Asian trade on Monday, boosted by reports forecasting a hike in crude demand, seen as an indicator of economic recovery, analysts said. Oil Up in Asian Trade

New York’s main contract, light sweet crude for delivery in November, gained 47 cents to 72.24 dollars a barrel.

Brent North Sea crude for November delivery climbed 43 cents to 70.43 dollars.

Crude prices were lifted by an International Energy Agency (IEA) report on Friday saying demand was expected to improve at the end of this year and in 2010 as the global economy recovers from a slump, analysts said.

“The IEA sharply revised its oil demand forecast for 2010 upwards, so that has added to the buoyant mood,” said Victor Shum, a senior principal with energy consultancy Purvin and Gertz in Singapore.

Despite its upbeat forecast on demand, the IEA report cautioned that the oil price was unlikely to rise much.

Demand has plunged amid the worst financial downturn since the Great Depression, with oil prices falling from historic highs of more than 147 dollars in July 2008 to about 32 dollars in December, but have since won back ground on recovery hopes.

Despite the turnaround from depressed levels, oil demand in 2010, even after the expected “rebound” “will still remain below 2008 levels,” said the IEA’s monthly report.

The agency revised upwards its estimate for global oil demand this year by a moderate amount of 200,000 barrels per day and for next year by 350,000 barrels per day.

Oil Up in Asian Trade

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