Brent crude rises to $110 after last week sell-off

PTI Singapore | Updated on May 09, 2011

Crude was higher in the Asian trade today, clawing back some of the ground it lost in sharp sell-off last week.

New York’s main contract, light sweet crude for delivery in June, rose $1.18 to $98.36 a barrel. Brent North Sea crude for June delivery gained 52 cents to $109.65.

“Oil prices are heading up this morning primarily reacting to the very sharp loss late last week, which was too much and too fast,” said Mr Victor Shum, a Singapore-based analyst from Purvin and Gertz international energy consultancy.

“We therefore see some buying (as traders) considering the pricing level to be a buying opportunity,” he added.

Positive employment data from the world’s biggest oil consumer also provided a boost to oil prices.

The US Labour Department’s stronger-than-expected non-farm job creation data released last Friday hinted at a growing US economy, although the overall unemployment rate also rose to nine per cent.

Meanwhile, Qatar’s Energy Minister Mohammed Saleh al-Sada told reporters on Sunday that an upcoming OPEC meeting could not be expected to make any major change, insisting that oil production and supplies were at healthy levels.

Published on May 09, 2011

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