|News||Crude contracts rise above $74 per barrel backed by Asian stocks|
|Analysis||Crude contracts rose above $74 per barrel in the early session, trailing Asian equities on the back of improved confidence levels inclined; the sentiment is start to rise again over the prospects for the economy recovery which in its role will continue to support rising demand outlook for crude.|
Asian stock indices ascended in the Asian session, after some banks earnings exceeded expectations; supporting crude to rise on the back of the bullish sentiment to record the highest at $74.75 per barrel. This comes after the IEA raised its expectations for demand levels on oil last week for 2010 by 1.6% or 170,000 barrels per day to 86.5 million barrels daily. The agency also added that this expected rise will be predominantly from the Asian continent.
A noticeable decline in trading volume was seen yesterday due to the US markets holiday for President's Day; while China, Hong Kong, Malaysia and Singapore celebrated the Lunar New Year. Trading levels, on the other hand, as of 12:33 PM Singapore time reached 20,854 compared to the five year daily average of 326,000.
As for NYMEX trading as of 02:30 EST; future heating contracts rose to $193.260 per gallon by $1.370; motor gasoline is trading around $194.000 per gallon after gaining $1.050; whereas natural gas contracts also followed and inclined $0.058 to record $5.526 per 1000 cubic feet. In London, Brent future contracts ascended by $0.850 to record $73.360.
Crude opened today at $73.95 per barrel, recording its highest at $74.925 and lowest at $73.95 per barrel, while presently trading around $74.77 per barrel.