Oil hov­ers near $87 in Asia on eco­nomic hopes

The Pak Banker - - International3 -

KUALA LUMPUR: Oil prices hov­ered near $87 a bar­rel Thurs­day in Asia af­ter a sharp rally the day be­fore that was pow­ered by strong eco­nomic data from the U.S. and China.

Bench­mark oil for Jan­uary de­liv­ery was down 3 cents to $86.72 a bar­rel at late af­ter­noon Kuala Lumpur time in elec­tronic trad­ing on the New York Mer­can­tile Ex­change. The con­tract surged $2.64 per­cent, or 3.1 per­cent, to set­tle at $86.75 on Wed­nes­day.

Im­proved man­u­fac­tur­ing ac­tiv­ity in the U.S. and China, job gains among small U.S. busi­nesses and higher U. S. work force pro­duc­tiv­ity re­vived con­fi­dence in the global eco­nomic re­cov­ery, giv­ing a lift to oil.

"We are main­tain­ing a bullish trad­ing pos­ture in an­tic­i­pa­tion of a fur­ther crude price ad­vance to the $90 area.

But, at the same time, ad­di­tional price ad­vances could prove er­ratic and one more dip to­ward the $85 area could be forth­com­ing be­fore this mar­ket is ready to make an­other run," Rit­ter­busch and As­so­ci­ates said in a re­port.

Oil has been trad­ing be­tween $81 and a two-year high of just above $88 a bar­rel in the past month. -Ap

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