Oil Rallies Above $47; Stocks Slide
LONDON World oil prices rallied on Tuesday as traders awaited a key vote on a massive US economic stimulus plan that could boost crude demand in the world’s biggest energy consumer, analysts said.
Brent North Sea crude for March delivery climbed $1.09 to $47.11 a barrel in London trade.
New York’s main futures contract, light sweet crude for March, added $1.01 to $40.57 a barrel.
“The market benefited (on Tuesday) from ... high hopes for the US fiscal stimulus plan, proposed by the Obama administration,” said VTB Capital analyst Andrey Kryuchenkov.
Elsewhere, traders were eyeing more possible output cuts by Opec when the cartel meets next month in Vienna.
“Uncertainty over the possibility for further Ope c production cuts was still haunting the market,” Kryuchenkov said.
European stock exchan-ges closed sharply lower following the announcement of a plan to stabilise the US banking sector.
The London FTSE 100 index shed 2.19 per cent to end the day at 4,213.08 while in the Paris the CAC 40 lost 3.64 per cent to close at 3,020.75 points. The Frankfurt Dax fell 3.46 per cent to 4,505.54.
In Asian markets, a key Japanese index, the Nikkei of the Tokyo Stock Exchange, closed at 7,945.94 points, 0.29 per cent lower than its previous close.
The Hang Seng, a key index of the Hong Kong Stock Exchange, ended 0.81 per cent above its last close.
Brent North Sea crude for March delivery climbed $1.09 to $47.11 a barrel in London trade.
New York’s main futures contract, light sweet crude for March, added $1.01 to $40.57 a barrel.
“The market benefited (on Tuesday) from ... high hopes for the US fiscal stimulus plan, proposed by the Obama administration,” said VTB Capital analyst Andrey Kryuchenkov.
Elsewhere, traders were eyeing more possible output cuts by Opec when the cartel meets next month in Vienna.
“Uncertainty over the possibility for further Ope c production cuts was still haunting the market,” Kryuchenkov said.
European stock exchan-ges closed sharply lower following the announcement of a plan to stabilise the US banking sector.
The London FTSE 100 index shed 2.19 per cent to end the day at 4,213.08 while in the Paris the CAC 40 lost 3.64 per cent to close at 3,020.75 points. The Frankfurt Dax fell 3.46 per cent to 4,505.54.
In Asian markets, a key Japanese index, the Nikkei of the Tokyo Stock Exchange, closed at 7,945.94 points, 0.29 per cent lower than its previous close.
The Hang Seng, a key index of the Hong Kong Stock Exchange, ended 0.81 per cent above its last close.
source: www.omantribune.com
