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Oil extends gains above US$78 in Asia

Oil extends gains above US$78 in Asia

Oil prices extended gains above US$78 a barrel yesterday in Asia ahead of inventory figures later in the week that could send it through the US$80 mark.
Benchmark crude for February delivery rose US$0.48 to US$78.53 at midday Singapore time in electronic trading on the New York Mercantile Exchange. Trading was thin due to the holiday season.
The contract rose US$1.38 to settle at US$78.05 on Thursday, the first time in more than a month that it closed above US$78. Oil markets were closed on Friday for Christmas.
Inventory figures from the Energy Information Administration later this week will determine if oil prices can end the year above US$80 a barrel, said Clarence Chu, a trader with Hudson Capital Energy in Singapore.
The government last week reported a crude stocks drawdown of five million barrels and if inventories continue to decline - suggesting improved demand - it will be a boost to crude prices.
Improved employment figures in the U.S. last week also buoyed sentiment and raised expectations of stronger consumer spending.
"There is an upside bias and oil can close the year above US$80 a barrel but fundamentals are still weak and don't support oil at this level," Chu said.


Updated : 2021-08-04 21:35 GMT+08:00