SEARCH

Crude oil prices rebound in Asia on bargain hunting

PTI
Share  ·   Comment (1)   ·   print   ·  
Analysts said global economic worries will continue to weigh on sentiment.
Analysts said global economic worries will continue to weigh on sentiment.

Oil prices rebounded in Asian trade today on bargain hunting following sharp falls in New York, but analysts said global economic worries will continue to weigh on sentiment.

New York’s main contract, light sweet crude for delivery in January was up 18 cents at $86.44 a barrel in the morning and Brent North Sea crude for January added 21 cents to $107.24.

Prices for both contracts fell yesterday after the European Central Bank forecast that the Eurozone would continue to contract next year and only return to growth in 2014.

In its regular quarterly projections, the ECB forecast the euro area economy will shrink 0.5 per cent in 2012 and another 0.3 per cent in 2013, instead of growing 0.5 per cent next year as previously estimated.

The debt crisis gripping the Eurozone and an impasse in budget talks in the United States continued to cast a subdued mood over the market, analysts said.

“Oil suffered from the ECB growth downgrades,” said Jason Huges, head of premium client management at IG Markets Singapore.

“The Asian Development Bank (ADB) also took a trick from the ECB and decided to downgrade growth rates for developing Asian, economies which won’t help sentiment.”

The ADB today cut its 2012 growth forecast for developing Asia, which comprises 45 nations, from 6.1 per cent to 6.0 per cent. It also revised downward the 6.7 per cent growth outlook for 2013 to 6.6 per cent.

Markets are also monitoring the gridlock over talks in Washington to avoid the fiscal cliff of tax hikes and spending cuts due to come into effect on January 1. If they are unsuccessful the harsh package will likely send the US economy into recession.

(This article was published on December 7, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.

Comments:

For Commodity Trading Video Reports & more Blog with us - Commodities
Online goo.gl/TSvmk

from:  vishaka
Posted on: Dec 7, 2012 at 15:39 IST
This article is closed for comments.
Please Email the Editor
Get commodities

Cereals Prices

Cotton Prices

Drug and Narcotics Prices

Dry Fruits Prices

Forest Products Prices

Fruits Prices

Jute Prices

Live Stock Prices

Oil Seeds Prices

Other Prices

Poultry Prices

Pulses Prices

Rice Prices

Rubber Prices

Spices Prices

Tobacco Prices

Vegetable Prices

Wheat Prices



O
P
E
N

close

Recent Article in Commodities

Higher arrivals drag castor

On the back of higher arrivals in spot market and profit booking by traders, castorseed futures declined on Wednesday. H... »

Comments to: web.businessline@thehindu.co.in. Copyright © 2014, The Hindu Business Line.