Oil recovers, stays around USD 61

Agencies
Posted: Thursday, Jul 09, 2009 at 1044 hrs IST
Updated: Thursday, Jul 09, 2009 at 1044 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 recovered modestly in Asian trade on Thursday after overnight falls in reaction to a bigger-than-expected drop in US gasoline reserves, analysts said.

New York's main contract, light sweet crude for August delivery was 54 cents higher at USD 60.68 a barrel.

Brent North Sea crude for August delivery advanced 62 cents to USD 61.05.

Crude prices are expected to remain under pressure in the immediate term due to worries about weak US energy demand, which has been further reinforced by the latest gasoline data, analysts said.

The rebound in Asia was not strong enough to suggest investor concerns over the US economy, the world's biggest energy consumer, have eased, they said.

"Until we see a decline in gasoline supplies, you can't really see the fundamentals improving much," said Benjamin Westmore, a Melbourne-based commodities economist with the National Australia Bank.

"There's some things that are improving but overall the situation is still weak."

Data released Wednesday by the US Department of Energy (DoE) showed the country's gasoline reserves increased by 1.9 million barrels in the week ending July 3, more than double analysts' consensus forecast.

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