Houston, August 25: Oil prices approached USD 75 a barrel today for the first time in 10 months amid growing optimism that the world’s economies are on the mend.
Benchmark crude for October delivery rose USD 74.62 a barrel on the New York Mercantile Exchange. Oil last topped USD 75 in October.
Natural gas rebounded strongly from new seven-year lows today, though prices remained well below USD 3 per 1,000 cubic feet.
Expectations that demand for energy will grow were spurred Friday by Federal Reserve Chairman Ben Bernanke, who said the US economy is reviving. Bernanke’s remarks and signs of improvement in the US housing market sent stock markets higher, and that carried over into the new week.
Even before Bernanke spoke, however, prices had already begun to rise on a large and unexpected drawdown in US oil supplies last week.
Equities appeared to follow energy prices, which took off midweek.
Asian and European markets were higher today, and the Dow Jones industrial average rose moderately in early trading.
This time, it appeared energy prices followed equities trading.
—Agencies