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Oil rises in Asian trade


Agence France-Presse
First Posted 10:59:00 08/23/2010

Filed Under: Soft Commodities, Oil & Gas - Downstream activities, Energy, Consumer Issues

SINGAPORE?Crude prices rose in quiet Asian trade Monday, but analysts warned that a strengthening greenback and dearth of hurricane news might pull markets down.

New York's main contract, light sweet crude for October delivery, gained 29 cents to reach 74.11 dollars a barrel.

Brent North Sea crude for delivery in October rose 21 cents to 74.47 dollars.

Crude markets snapped a three-session dive but were directionless, said Serene Lim, oil and gas analyst for ANZ bank in Singapore.

"Oil markets might be taking a breather.... There's really basically no news," she said.

However, Lim warned that the price hike was fragile due to the greenback hitting six-week highs last week and a dearth of hurricane news in the midst of the season.

A strong greenback makes dollar-priced crude more costly to buyers using other currencies, and the onset of the hurricane season traditionally drives prices higher due to oil rig supply disruptions.

"Given that the US dollar has been strengthening and the lack of hurricane news, there seems to be more downside pressure than upside," she said.



Copyright 2011 Agence France-Presse. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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