Oil prices head towards 59 dollars

LONDON: Oil prices rose slightly towards 59 dollars a barrel on Friday as global stock markets rebounded, analysts said.

New York's main futures contract, light sweet crude for delivery in June, gained 18 cents to 58.80 dollars a barrel.

Brent North Sea crude for July delivery rose six cents to 58.65 dollars. The June contract had expired on Thursday, priced at 56.69 dollars.

"Economic optimism has driven equities higher and oil has gone along with equities," said Victor Shum, senior principal of Purvin and Gertz energy consultants.

"Part of the reason that oil fundamentals (of supply and demand) have been brushed aside... is that investors are indeed looking ahead and betting on a fairly fast recovery from this global economic downturn," Shum added.

New York crude hit a six-month peak of 60.08 dollars on Tuesday, boosted by hopes for recovery and a fall in the dollar that made dollar-priced crude cheaper for foreign buyers.

Oil prices remain massively below record highs of above 147 dollars a barrel reached last July as a global recession hits demand for energy.