Oil Prices Jump Above 76 Dollars

Position

Home

News

Oil and Gas

Oil Prices Jump Above 76 Dollars

Wednesday, 17 February 2010 09:33

London - World oil prices shot above 76 dollars on Tuesday, as the dollar fell and the market followed crude oil demand outlook.
The main futures contract, New York, light sweet crude for delivery in March, rose 2.43 dollars to 76.56 dollars per barrel at around 1530 GMT.

Oil Brent North Sea crude for April delivery soared 2.72 dollars to 75.23 dollars per barrel.

In foreign exchange trading on Tuesday, the euro regained some losses recently against the dollar.

A weaker dollar makes the price of crude oil in the greenback cheaper for buyers using other currencies, thus boosting demand.

The price of oil "is supported by the weakening U.S. dollar as the euro strengthened," said Myrto Sokou, an oil market analyst at Financial Research Sucden in London.

Meanwhile, oil prices rose strongly on Tuesday after recent falls due to the fall of the euro and the latest effort to cool China's rapid economic, traders said.

China is a nation that consumes oil the world's second largest after the United States.

"The market has clearly overreacted because of the energy consumers
second largest in the world will still see a substantial increase in energy demand this year and growth will occur regardless of government efforts to reduce the loan, "said commodities analyst Andrey Kryuchenkov of Russian investment bank VTB Capital on Tuesday.

Meanwhile oil trade volume expected to increase on Tuesday as U.S. traders return to work after the public holiday Monday in the United States.

Commerzbank analyst on Tuesday predicted the price is heading lower risk.

"Supported tingggi commercial inventories of crude oil and oil products, a weakening of refinery demand in the western world and the expansion of OPEC production we continue to see downside risks to oil prices," they wrote in a research note to clients.
"Weak oil demand was reflected in a fall in freight rates up by 17 percent within a week for the route from the Middle East to Japan and just under seven per cent for routes from the Middle East to the United States," they added.

OPEC oil producers' cartel last week to maintain moderate growth projections for world oil demand this year, but warned the economic lambatnyapemulihan's blur.

World oil demand in 2010 is forecast to grow 0.8 million barrels per day (bpd) to average 85.1 million barrels per day, predictions Organization of Petroleum Exporting Countries, which together member countries to pump about 40 percent from crude oil. | antaranews.com | tenderoffer.biz |