Oil prices hover around US$85
NEW YORK – World oil prices were mixed Friday, with crude contracts in New York ending the week well off recent US$87 highs, but London Brent contracts finishing the day up.
New York’s main contract, light sweet crude for delivery in May, fell 47 cents to US$84.92 a barrel.
Meanwhile London’s Brent North Sea crude for May won 43 cents to US$85.23 a barrel.
“We’ve some gradual selling off after the spike towards 87 (dollars)” said Jason Schenker of Prestige Economics.
A barrel of Texan crude, the benchmark for US markets, passed that marker on Tuesday for the first time since October 2008 after US reported the highest rate of job creation in three years, boosting demand expectations.
“There has been a lot of important data digested over the last couple of weeks,” said Schenker. “Right now the market is very optimistic about the economy.”
But Schneker said the gradual decline in oil prices could last until new data emerges toward the end of the month.
There is “probably going to be holding pattern until the next wave of critical data,” he said.
In European trade oil prices were up.
Europe’s main stock markets rebounded slightly on Friday, after recent sharp losses on the back of Greek debt worries, as traders eyed higher commodity prices and the upcoming US results season.
“Supported by benign equity markets, sustained bullish sentiment and a slightly weaker US dollar, the oil price recouped the losses of the previous two days,” said Commerzbank analyst Carsten Fritsch.
The euro meanwhile rose above US$1.34, gaining ground one day after European Central Bank chief Jean-Claude Trichet said the EU plan to rescue Greece can work.
A weaker greenback tends to benefit dollar-priced oil because it becomes cheaper for buyers using stronger currencies, and therefore stimulates demand and prices.
New York crude futures had been lifted by a stronger equities performance in Hong Kong and China, but analysts warned the market would pare back gains later in the day.
“Trading volume is pretty light so I wouldn’t read too much into (the gains),” said Clarence Chu, an oil trader with Hudson Capital Energy in Singapore.
