Singapore, August 24: Oil prices rose in Asian trade today, bolstered by improved investor sentiment amid widespread hopes for a global economic recovery, analysts said.
A weaker US dollar was also a factor behind the surge in oil prices, they said.
New York’s main contract, light sweet crude for October delivery, gained 25 cents to USD 74.14 a barrel.
Brent North Sea crude for October delivery advanced 44 cents to USD 74.63.
“Sentiment remains broadly supportive of commodities including oil in anticipation of an economic recovery,” said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
New York crude prices scaled new 2009 highs last week, rising above USD 74 on Friday on a weak greenback, an improved US macro-economic outlook and positive eurozone data.
The New York contract soared to USD 74.72 during US trading Friday, a level last seen on October 20 2008, before easing to close at USD 73.89.
A slew of economic data released last week suggested the US economy and euro-zone economies were likely recovering, boosting hopes that energy demand in turn would see an uptick, analysts said.
“Data is sparse this week but should all support the view that recession is over,” analysts from Singapore’s DBS Bank said in a report in its view on the US economy.
–Agencies