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Oil Prices Rebound in Asia

Posted by on Friday, May 6, 2011, 10:50
This news item was posted in Business category and has 0 Comments so far .

New York oil prices rebounded above the $100 mark in Asian trade Friday as traders snapped up cheap crude after a massive sell-off last night, analysts said.

Oil Prices Rebound in Asia
Oil Prices Rebound in Asia

West Texas Intermediate light sweet crude for delivery in June added 68 cents to $100.48 per barrel after slumping more than eight percent to close at $99.80 on Thursday — the first time it fell below $100 since March 16.

Brent North Sea crude for June delivery gained 87 cents to $111.67 after it slid more than $10 overnight.

Oil markets were recouping some of Thursday’s losses as traders capitalised on cheap crude prices to buy back into the market, said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.

“Prices are up but this is not unusual after a massive sell-off, we are observing some market participants considering this as a buying opportunity,” he told AFP.

Crude prices had nosedived late Thursday after comments by European Central Bank president Jean-Claude Trichet were more dovish than expected, sparking a run for the greenback as hopes for a quick follow-up to last month’s interest rate hike evaporated.

A stronger greenback makes dollar-priced crude more expensive to traders using other currencies.

However, Shum expressed confidence that crude prices would remain supported “around the triple-digit territory.”

“After all the geopolitical issues that caused prices to rally 20 percent over the year has not changed,” he said.

A bloody civil war in Libya as well as an army clampdown on anti-regime protesters in Syria highlighted ongoing instability in the Middle East and North Africa, a key oil-producing region.

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