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Oil races toward US$86 on signs of global economic upswing

Oil races toward US$86 on signs of global economic upswing

Oil raced towards US$86 a barrel in Asian trade yesterday, extending gains on demand optimism amid signs of a global economic upswing, analysts said.
New York's light sweet crude for delivery in May was up US$0.77 to US$85.64 a barrel. New York crude briefly traded above US$85 last week, its highest level since October 2008.
Brent North Sea crude for May climbed US$0.59 to US$84.60 a barrel.
Analysts said the market's rally was helped by a series of bullish economic data, including Friday's U.S. jobs report, which showed the biggest growth in three years, boosting recovery hopes for the world's largest economy.
"Many traders also bought ahead of the long weekend and now we have some momentum carrying the trade forward and pushing prices up," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
Investor sentiment was also boosted by last week's numbers showing the U.S. manufacturing sector grew at a faster pace than expected and a government report that said Chinese manufacturing picked up in March.
Manufacturing in the eurozone also defied forecasts in March, with a key index hitting a 40-month high.
A weaker U.S. dollar, which makes U.S. dollar-priced commodities such as crude cheaper for investors using other currencies, has also helped push oil prices higher, analysts said.


Updated : 2021-03-04 23:38 GMT+08:00