"At this point, it's more momentum than fundamentals," said Gerard Rigby, energy analyst with Fuel First Consulting in Sydney. "People are expecting oil to jump over the next 12 to 24 months."
Investors brushed off evidence this week that U.S. crude inventories are at a 16-year high.
Oil prices rose above $53 a barrel Friday, extending a rally fueled by market optimism that crude demand may rebound if the U.S. economic downturn bottoms out soon. Investors remained cautious, however, ahead of a crucial U.S. jobs report later in the day.
In London, Brent prices rose 46 cents to $53.21 a barrel on the ICE Futures exchange.
Oil prices have bolted from below $35 a barrel six weeks ago, riding a wave of improving investor sentiment that the worst of the U.S. recession may be over. Crude prices have mirrored a surge in stock markets, with the Dow Jones industrial average up more than 20 percent during the last month.
|
No comments:
Post a Comment