Oil prices briefly rose above US$80 a barrel yesterday in Asia as better-than-expected US corporate earnings boosted investor confidence.
Benchmark crude for November delivery rose as much as US$0.44 to US$80.05 a barrel but later fell back and was down US$0.27 at US$79.34 by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose US$1.08 to settle at US$79.61 on Monday.
Crude did a chin-up over US$80 a barrel for the first time this year after Apple Inc and Texas Instruments Inc reported third quarter earnings on Monday that beat analyst forecasts. Caterpillar Inc, Coca-Cola Co and DuPont were scheduled to report later yesterday.
Crude demand has remained sluggish this year as the global economy recovers from recession. With the US Federal Reserve keeping interest rates at near zero percent, investors have flocked to stocks and commodities.
“This rally isn’t based on fundamentals. It’s about risk appetite,” said Jonathan Kornafel, Asia director for market maker Hudson Capital Energy in Singapore. “Money is looking for some kind of return.”
In other Nymex trading, heating oil was steady at US$2.05 for 3.78 liters. Gasoline for November delivery held at US$1.99 for 3.78 liters. Natural gas for November delivery jumped US$0.081 to US$4.92 per 28 cubic meters.
In London, Brent crude for December delivery fell US$0.24 to US$77.53 on the ICE Futures exchange.
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