Oil above $80 a barrel on US growth
Oil prices surged back above $80 a barrel in Asian trade today on news the United States has emerged from a long and painful recession after posting its strongest growth in two years.
By Agencies |
SINGAPORE: Oil prices surged back above $80 a barrel in Asian trade today on news the United States has emerged from a long and painful recession after posting its strongest growth in two years.
New York's main contract, light sweet crude for December delivery, was trading at $80.08 in morning trade, up 21 cents from the previous day.
Brent North Sea crude for December was up 10 cents to $78.14.
After four consecutive contractions, the world's largest economy grew at a seasonally adjusted 3.5 per cent in the September quarter from the previous three months, the Commerce Department said.
The rise was the biggest since the 2007 third quarter, when the subprime mortgage market sparked a global financial crisis that spilled over into the world economy.
"The good news is that the 3.5 per cent annualised rebound in the third quarter GDP (gross domestic product) confirms the most severe and longest recession since the 1930s is over," consultancy Capital Economics said.
"We expect economic growth to continue at about the same pace for the next few quarters as pent-up investment demand is released, inventories are restocked and the boost from the fiscal stimulus continues."
The US is the world's biggest energy consumer and the health of its economy and the consumption patterns of Americans are key influences in the oil market.
New York's main contract, light sweet crude for December delivery, was trading at $80.08 in morning trade, up 21 cents from the previous day.
Brent North Sea crude for December was up 10 cents to $78.14.
After four consecutive contractions, the world's largest economy grew at a seasonally adjusted 3.5 per cent in the September quarter from the previous three months, the Commerce Department said.
The rise was the biggest since the 2007 third quarter, when the subprime mortgage market sparked a global financial crisis that spilled over into the world economy.
"The good news is that the 3.5 per cent annualised rebound in the third quarter GDP (gross domestic product) confirms the most severe and longest recession since the 1930s is over," consultancy Capital Economics said.
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"We expect economic growth to continue at about the same pace for the next few quarters as pent-up investment demand is released, inventories are restocked and the boost from the fiscal stimulus continues."
The US is the world's biggest energy consumer and the health of its economy and the consumption patterns of Americans are key influences in the oil market.
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