Oil Prices Rally from Recent Falls
LONDON - World oil prices rebounded Thursday from recent falls on bargain-hunting ahead of a report expected to show a build-up in crude inventories in the recession-hit United States, dealers said.
New York's main futures contract, light sweet crude for delivery in March, won 1.24 dollars to 35.26 dollars per barrel.
Brent North Sea crude for April delivery added 1.05 dollars to 40.60 dollars a barrel.
The US government's Energy Information Administration (EIA) will later release its report on American crude stockpiles for the week ending February 13.
Despite Thursday's gains, analysts warned that prices could resume heavy falls if the report indicates weakening US energy demand.
"Crude oil inventories are continuing to climb, as the (US) economy continues to sag, taking the demand for fuel with it," said analysts at JBC Energy in a research note to clients.
"Analysts are anticipating a rise in inventories today. The report is a day late, due to last Monday being a holiday in US.
"Oil could fall towards the 32-dollar level after the announcement," he warned.
Analysts predict that the EIA report will show that US crude inventories have risen for an eighth successive week.
The report is eagerly awaited by traders because the United States is the world's biggest energy consuming nation and is currently mired in a recession.
Oil prices have slumped from record highs above 147 dollars a barrel reached last July, as the market has been hit by plunging energy demand because of the global economic slowdown.
The Federal Reserve forecast Wednesday the US economy would shrink in 2009 and for the first time moved toward a long-range inflation goal in a bid to clarify monetary policy.
The Fed said it expects the world's largest economy to contract 0.5 to 1.3 percent this year and anticipated an "unusually" prolonged recovery, according to the minutes of a Federal Open Market Committee (FOMC) meeting in January.
Unemployment in 2009 was forecast to rise from 8.5 to 8.8 percent and gradually fall as low as 6.7 in 2011.
Oil prices meanwhile remain vulnerable to weak economic data amid the ongoing worldwide slowdown, analysts warned.
"Risk remains for price vulnerability on disappointing news from the economic arena," cautioned Sucden Financial's Brenda Sullivan.
New York's main futures contract, light sweet crude for delivery in March, won 1.24 dollars to 35.26 dollars per barrel.
Brent North Sea crude for April delivery added 1.05 dollars to 40.60 dollars a barrel.
The US government's Energy Information Administration (EIA) will later release its report on American crude stockpiles for the week ending February 13.
Despite Thursday's gains, analysts warned that prices could resume heavy falls if the report indicates weakening US energy demand.
"Crude oil inventories are continuing to climb, as the (US) economy continues to sag, taking the demand for fuel with it," said analysts at JBC Energy in a research note to clients.
"Analysts are anticipating a rise in inventories today. The report is a day late, due to last Monday being a holiday in US.
"Oil could fall towards the 32-dollar level after the announcement," he warned.
Analysts predict that the EIA report will show that US crude inventories have risen for an eighth successive week.
The report is eagerly awaited by traders because the United States is the world's biggest energy consuming nation and is currently mired in a recession.
Oil prices have slumped from record highs above 147 dollars a barrel reached last July, as the market has been hit by plunging energy demand because of the global economic slowdown.
The Federal Reserve forecast Wednesday the US economy would shrink in 2009 and for the first time moved toward a long-range inflation goal in a bid to clarify monetary policy.
The Fed said it expects the world's largest economy to contract 0.5 to 1.3 percent this year and anticipated an "unusually" prolonged recovery, according to the minutes of a Federal Open Market Committee (FOMC) meeting in January.
Unemployment in 2009 was forecast to rise from 8.5 to 8.8 percent and gradually fall as low as 6.7 in 2011.
Oil prices meanwhile remain vulnerable to weak economic data amid the ongoing worldwide slowdown, analysts warned.
"Risk remains for price vulnerability on disappointing news from the economic arena," cautioned Sucden Financial's Brenda Sullivan.
source: www.khaleejtimes.com
