Oil prices edge up after sharp sell-off

Written by Agencies | London | Updated: Aug 27 2009, 02:42am hrs
Oil prices rose today after volatile trade the previous day saw the market hit a 10-month high at USD 75 on strong US consumer confidence data, before plunging on profit-taking.

Later today, traders will focus on the weekly crude inventories report in the United States, the worlds biggest energy consuming nation.

New Yorks main contract, light sweet crude for October delivery, rose 38 cents to USD 72.43 a barrel. The contract hit USD 75 exactly in intraday trade yesterday, the highest level since October 20.

Brent North Sea crude for October added 52 cents to USD 72.34 in early afternoon London deals today.

Oil is currently trading around USD 72 per barrel, after failing to break through the USD 75 level, said BetOnMarkets analyst David Evans.

Analysts believe this level is a very important technical barrier and could be defended well by traders. Both contracts shed almost two and a half dollars by the close yesterday.