Reports said Friday that oil futures varied in Asia as trade gets weaker before the weekend.
According to the reports, light, sweet crude for February delivery fell $0.27 to settle at $91.13 a barrel in the Globex electronic session, while Brent crude for February settlement gained $0.32 to $98.38 a barrel on London-based ICE Futures Exchange.
Analysts said that there will be more commodity buying as the dollar continues to weaken against the euro after the euro-zone economy retreated due to favorable outcomes brought by bond auctions in Portugal. The euro traded above $1.33 Friday after falling below $1.29 earlier this week. Analysts said that an improvement on euro debt crisis is helping the oil prices to soar higher as traders expect bigger demands in the region.
Nymex February crude traded $91 a barrel earlier in the day, but pulled back as supported by several speculations on inflows. Analysts said that to test early January high of $92.58 will definitely need even stronger factors. Other strategists said that a weaker dollar, an increase on unemployment, and an anticipated increase on US stockpiles have badly influenced the performance of oil in the market. Traders of foreign currencies were forced to buy crude while the dollar is still low.
Meanwhile, rising demands from Asian countries like China and India favored a strong outlook for oil prices. Analysts said that oil is still relatively cheaper compared with other commodities. Other Nymex reformulated gasoline benchmark for February gained 112 points to $2.4571 a gallon, while February heating oil gained 109 points to settle at $2.6200.
Source: Seedol.com | Hot Breaking News
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