Exchange - London Oil Prices Rise Above 81 Dollars

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Exchange - London Oil Prices Rise Above 81 Dollars

Tuesday, 03 August 2010 08:30

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Exchange - London Oil Prices Rise Above 81 Dollars
Bursa - Harga Minyak di London Naik di Atas 81 Dolar
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London - World oil prices 81 dollars through the United States on trade in London, Monday, hitting levels last seen in May, with sentiment driven by rising global stock markets, the banks are strong and solid U.S. economic data.

New York's main futures contract, light sweet crude for September delivery, leapt as high as 81.72 dollars, touching levels last seen on May 5. Then stood at 81.36 dollars, up 2.41 dollars from its close Friday.

Brent North Sea crude oil for September delivery jumped to 81.17 dollars, before retreating slightly to 80.80 dollars, up 2.62 dollars from Friday.

Oil prices rallied in line with European stock markets "and" driven by optimism about the strength of economic recovery, "an analyst at PVM Oil Associates said in a research note to clients.

Global stock markets rose higher on Monday as investors applauded the strong profits from HSBC and BNP Paribas.

HSBC rose 5.26 percent in London after reporting that its first half profit more than doubled to 6.76 billion dollars (5.17 billion euros) due to the reduced burden of bad loans in the United States and increased profits in the primary market.

In Paris, BNP Paribas rose 5.27 percent as the French bank reported unexpectedly strengthening second-quarter net profit amounted to 2.1 billion euros (2.7 billion dollars), up 31 percent and well above analyst estimates.

European markets got another boost in afternoon trading as Wall Street take off with the blue-chip Dow Jones Industrial Average jumped after it was reported that the U.S. manufacturing sector expanded for the 12th consecutive month in July.

Manufacturing index from the Institute of Supply Management for July fell to 55.5 points from 56.2 percent in June, but this is far above the market forecast 54.2 per cent. Readings above 50 indicate the manufacturing sector to grow.

Meanwhile, oil traders ignored the gloomy economic news in China, the country's second largest energy eater in the world after the United States.

Data Federation of Logistics and Purchasing China showed on Sunday that manufacturing activity slowed in July, but remained in positive territory with a number of 51.2 - for the overall decline would be under 50.

And on Monday, purchasing managers index (PMI) of China from HSBC showed a contraction in July to 49.4. (ANTARANews / AFP)
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