Oil hovers above USD 64 per barrel

Associated Press
Posted: Tuesday, Jul 07, 2009 at 1102 hrs IST
Updated: Tuesday, Jul 07, 2009 at 1102 hrs IST

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Oil hovers below $79 after 3-day slide Oil spikes to USD 81.26 a barrel Oil eases to USD 78.65 a barrel Oil tops $80, highest since Oct 14, 2008

Singapore: Oil prices hovered above $64 a barrel on Tuesday in Asia after falling 12 per cent in a week on investor doubts about a global economic recovery.

Benchmark crude for August delivery rose 26 cents to USD 64.31 a barrel by mid-morning Singapore time in electronic trading on the New York Mercantile Exchange. On Monday, it fell USD 2.68 to settle at USD 64.05.

Prices reached an eight-month high last week above USD 73, but quickly tapered off as dismal unemployment figures suggested that the US and Europe would be slower to rebound out of recession than expected.

Some analysts expect prices to rally again soon on signs that the worst of the economic slowdown is over.

"I think the market will look for some positive news and head back up toward USD 70," said Gerard Rigby, an energy analyst at Fuel First Consulting in Sydney. "There's been some profit taking in the last week, but I don't think there was a real change in sentiment".

More attacks on Nigeria's oil infrastructure helped boost prices. Nigeria's main militant group said yesterday it seized a chemical tanker with six foreign crew members aboard and attacked a second oil facility.

Investors will be looking to a weekly inventory report from the Energy Department's Energy Information Administration for signs that crude demand may be growing.

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