Oil extends gains, NY crude above $77

I / Singapore May 11, 2010, 9:56 IST

Oil prices were firmer in Asian trade today on expectations of improving energy demand, boosted by the EU-IMF eurozone rescue package and Chinese oil consumption, analysts said.

New York's main contract, light sweet crude for June delivery, gained 22 cents to $77.02 a barrel.

Brent North Sea crude for June rose 23 cents to $80.35.

Prices were mainly supported by yesterday's European Union and International Monetary Fund aid package worth 750 billion euros ($one trillion) to stop the Greek debt crisis from spreading.
   
The US Federal Reserve, the European Central Bank and central banks in Japan, Britain, Canada and Switzerland also said they would intervene to ensure that dollar shortages did not occur in the European market.
   
"Market sentiment is still benefiting from the package of measures designed to help support the euro system," David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia, told AFP.
   
The deal helped oil futures to rally $1.69 in New York trade yesterday after falling from a 19-month peak of $87.15 a barrel on May 3 over fears the crisis in Europe could threaten the global economic recovery.
   
Sentiment was also boosted by data showing that China, the world's second largest oil consumer, imported a new record high of crude oil last month.
   
Figures released by the General Administration of Customs Monday said the country imported 21.17 million metric tonnes of crude in April.
   
"Chinese imports of oil remain very strong and that may also be a supporting factor," Moore said.