Crude oil prices up in Asia

Singapore: (Wednesday,  July 11, 2012) The price for crude oil in Asian markets have gone up as the bargain hunting traders expressed greater interest for buying following an overnight price slump that was sparked by the end of
a Norwegian oil workers’ strike.

According to the details, the New York’s main contract, light sweet crude for delivery in August, gained 28 cents and rose to $ 84.19 per barrel. Meanwhile, Brent North Sea crude for delivery for August also went up by 28 cents
to reach $ 98.25.

While telling details of this recent phenomenon that has rather stabilized the prices in Asian oil market, a market strategist for IG Markets Singapore said, “Crude oil which had been ‘oversold’ in late New York trade Tuesday,
were returning to a more stable level.”

He said, “It’s a slight sort of bounce back because it got hit quite hard overnight.”

Crude prices had gone down by more than $ 2.00 on both the New York and London indexes in late trade Tuesday on the news about Norwegian government stepping into end the 16-day long strike in Western Europe’s largest oil and gas
producer.

After the strike was ended, the Norwegian oil fields said that in order to make up for the loss they had to incur due to strike, they will ramp up the output. The increased supply of oil in the market had pulled the prices down.

However, the analysts are of the view that increase in the oil prices is not sustainable. Given the low demand from China and the USA, the largest importer and consumers of oil, there would still remain downside pressure on oil.

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Posted by Fayyaz Yaseen on Jul 11 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry