Oil rises above $60 on signs Asia growth reviving
Oil prices climbed back above $60 a barrel on Tuesday in Asia on signs the region be may emerging from an economic slump.
By Agencies |
SINGAPORE: Oil prices climbed back above $60 a barrel on Tuesday in Asia on signs the region be may emerging from an economic slump.
Benchmark crude for August delivery was up 70 cents to $60.39 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Yesterday, the contract fell 20 cents to settle at $59.69.
Singapore said today its economy surged an annualized, seasonally adjusted 20.4 per cent in the second quarter, adding to hopes that Asia could lead the world out of recession and fuel crude demand.
Crude prices have flirted with $60 a barrel for the last few days -- pausing after a drop from an eighth-month intraday high of $73.38 on June 30 -- as concern about a struggling US economy undermined investor optimism.
"There's evidence that Asia, led by China, is turning around quite quickly," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. "That's where the demand growth potentially will be."
Singapore was the first major Asian country to report second quarter gross domestic product. China, the world's third-largest economy, is scheduled to announce GDP later this week.
Moore said crude will likely average about $60 a barrel in the third quarter as signs of economic recovery in Asia are offset by weaker results in the US and Europe.
Benchmark crude for August delivery was up 70 cents to $60.39 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Yesterday, the contract fell 20 cents to settle at $59.69.
Singapore said today its economy surged an annualized, seasonally adjusted 20.4 per cent in the second quarter, adding to hopes that Asia could lead the world out of recession and fuel crude demand.
Crude prices have flirted with $60 a barrel for the last few days -- pausing after a drop from an eighth-month intraday high of $73.38 on June 30 -- as concern about a struggling US economy undermined investor optimism.
"There's evidence that Asia, led by China, is turning around quite quickly," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. "That's where the demand growth potentially will be."
Singapore was the first major Asian country to report second quarter gross domestic product. China, the world's third-largest economy, is scheduled to announce GDP later this week.
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Moore said crude will likely average about $60 a barrel in the third quarter as signs of economic recovery in Asia are offset by weaker results in the US and Europe.
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