Don’t miss the latest developments in business and finance.

Oil prices up in Asian trade on US housing data

Image
AFPPTI Singapore
Last Updated : Jan 20 2013 | 12:00 AM IST
I / Singapore July 20, 2009, 10:00 IST

Oil prices rose in Asian trade today, lifted by positive US housing construction data that suggested the crisis-hit housing market was over the worst, analysts said.  

New York's main futures contract, light sweet crude for delivery in August, gained 21 cents to $63.77 a barrel.  

Brent North Sea crude for September delivery climbed 27 cents to $65.65.  

Data released Friday by the US Commerce Department showed construction starts on privately owned homes rose 3.6 per cent in June to a seasonally adjusted rate of 582,000, the fastest pace since November.  

The jump in housing starts was much stronger than the 530,000 pace expected by most analysts and followed a revised 562,000 starts in May, up 30,000 from the initial estimate.  

Also Read

"Oil prices drew support from the US housing starts data," the Commonwealth Bank of Australia said in a report.  

David Bensimon of financial advisory firm Polar Pacific explained crude markets were currently "in the midst of a consolidation" and could rise in the near term.  

"The market has begun a new multi-year advance...there is some potential, if oil holds at (current) levels, for it to move to $80 in the next four to six weeks," he said.  

Oil prices have slumped amid the economic downturn after striking all-time highs above $147 a barrel a year ago, but have slowly clawed back ground on hopes that the global recession is on the mend.

More From This Section

First Published: Jul 20 2009 | 10:00 AM IST

Next Story