Oil prices continue rise above 61 dlr a barrel
Oil prices continued to rise Friday as Asian traders reacted to signs that US refineries have begun to increase production and other positive market signs.
By Agencies |
SINGAPORE: Oil prices continued to rise Friday as Asian traders reacted to signs that US refineries have begun to increase production and other positive market signs. Light, sweet crude for May delivery increased 23 cents to $61.92 in midmorning Asian electronic trading on the New York Mercantile Exchange. This followed a surge of more than $2 a barrel the day before after the US government reported more robust refinery usage for the first time in weeks.
Traders also appeared to interpret a decision by the US Federal Reserve to leave its benchmark interest rate unchanged as positive for the market. But while early Friday trading followed Thursday's rising trend, it was not certain to continue.
“Yesterday's rise might have been partly due to short covering, and I'm not sure whether the rise continues today,'' Ken Hasegawa of Tokyo brokerage Himawari CX told Dow Jones Newswires. The US inventory report released Wednesday indicated that refineries are beginning to emerge from their seasonal maintenance period, after weeks of declining utilization, and will soon start demanding more crude oil ahead of the US driving season.
The Energy Information Administration reported refineries operated at 86.3 per cent capacity last week, up 0.7 per cent from the prior week. A plunge on Wall Street and in Asian markets last week stirred concerns about the US economy's health and future demand for energy. The markets have since bounced back.
In other Nymex trading Friday, natural gas futures fell 1 cent to $7.310 a gallon, and heating oil futures for April rose marginally to $1.7198 a gallon.
Traders also appeared to interpret a decision by the US Federal Reserve to leave its benchmark interest rate unchanged as positive for the market. But while early Friday trading followed Thursday's rising trend, it was not certain to continue.
“Yesterday's rise might have been partly due to short covering, and I'm not sure whether the rise continues today,'' Ken Hasegawa of Tokyo brokerage Himawari CX told Dow Jones Newswires. The US inventory report released Wednesday indicated that refineries are beginning to emerge from their seasonal maintenance period, after weeks of declining utilization, and will soon start demanding more crude oil ahead of the US driving season.
The Energy Information Administration reported refineries operated at 86.3 per cent capacity last week, up 0.7 per cent from the prior week. A plunge on Wall Street and in Asian markets last week stirred concerns about the US economy's health and future demand for energy. The markets have since bounced back.
In other Nymex trading Friday, natural gas futures fell 1 cent to $7.310 a gallon, and heating oil futures for April rose marginally to $1.7198 a gallon.
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