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Oil mixed in Asian trade

Oil mixed in Asian trade

Oil was mixed in Asian trade testerday after it was pulled down overnight by a strengthening U.S. dollar and hopes of easing tensions in crude-rich Nigeria, analysts said.
New York's main contract, light sweet crude for December delivery, rose US$0.06 to US$78.74 a barrel.
Brent North Sea crude for December delivery fell US$0.04 to US$77.22 a barrel.
Crude prices have eased in recent sessions after hitting US$82 last week, its highest level since Oct. 14, 2008, on the back of the slumping U.S. currency.
"The weakness of the U.S. dollar has also played an increasing part in the rise in commodity prices," Capital Economics' analysts said in a report.
"A partial recovery in the dollar is therefore one important downside risk," analysts from the London-based consultancy said.
In Asian trade yesterday, the dollar climbed to a five-week high of 92.33 yen from 92.23 in New York late Monday amid speculation the U.S. Federal Reserve may signal a clearer timeframe for lifting its rock-bottom interest rates.
The euro gained to US$1.4870 from US$1.4863.
"We view the dollar rally as broad, powerful and having further to run," said Societe Generale analyst Patrick Bennett.
The announcement of an "indefinite ceasefire" by militants in Nigeria partly allayed investor concerns over potential supply disruptions from the African country. Nigeria is the world's eighth-largest oil producer.
The Movement for the Emancipation of the Niger Delta (MEND) said it had made its decision after the government "expressed its readiness to engage in serious and meaningful dialogue with every group or individual towards achieving a lasting peace in the Niger Delta."
MEND's attacks on the Nigerian oil industry have helped wreak havoc with oil prices on the world market and slashed the nation's output by a third since 2006.
A key demand from MEND is that local communities must benefit from the region's oil wealth.


Updated : 2021-07-30 01:49 GMT+08:00