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Oil higher in Asian trade, investors cautious

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AFPPTI Singapore
Last Updated : Jan 21 2013 | 12:29 AM IST
I / Singapore November 02, 2009, 10:51 IST

Oil was slightly higher in Asian trade today but, investors remained cautious over the outlook for energy demand, as worries remain over the strength of the US economic recovery, analysts said.

New York's main contract, light sweet crude for December delivery gained 25 cents to $77.25 a barrel.

Brent North Sea crude for December delivery was two cents higher at $75.22.

While data released last Thursday showed the US has emerged from a prolonged recession, consumer spending, which accounts for two-thirds of the nation's  economic activity, fell in September.

"I think the reality is that the economic signals out there have been mixed," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

"Last week there was positive US (gross domestic product) but consumer spending was quite negative."

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Shum added: "Even though there are signs of economic recovery, the recovery appears to be on a shaky ground and also somewhat uncertain."

The US on Friday said consumer spending in the world's biggest economy and energy user fell for the first time in five months in September.

A day earlier, the Commerce Department said the US economy grew at a seasonally adjusted 3.5 per cent in the September quarter from the previous three months.

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First Published: Nov 02 2009 | 10:51 AM IST

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