Asian Current Oil Prices Rose Over $90 a Barrel

The current oil prices in Asia rose over $90 per barrel, a first since the month of May, after oil demand in the United States increased and regional stock markets bounced back on strong revenues and improved economic data from the U.S.

In NYMEX electronic trading, Benchmark crude gained 47 cents for an oil price per barrel of $90.34 during midday Bangkok time. At the close of the Asian trading day, it gained a total of 65 cents for an oil price per barrel of $89.87. In London’s ICE Futures Exchange, Brent crude rose by 76 cents reaching $105.92 per barrel.

According to the Energy Information Administration, the U.S. average demand for oil rose in the past week for the third straight week. For the most part of the year, oil demand in the United States had been weak, with the slowdown in production activity and decline in travel.

The weekly petroleum report of the agency also noted an unanticipated drop in the supply of gasoline during the past week as refineries decreased production. Oil stocks also dropped, although the fall was lower than the expectations of analysts.

Schork Group analysts stated in a report that the current oil prices will most likely hover around $90 in the short term because of indications from the EIA report that demand is improving.

Moreover, gains in the stock market in Asia also support oil market sentiments following strong revenues from Ebay and IBM and a report from the Commerce Department that home builders in the United States broke ground in the past month on more residential structures in almost four years.

Elsewhere in the energy markets, heating oil gained 0.8 cent for a per gallon price of $2.885 while gasoline rose by 0.7 cent for a per gallon price of $2.782. The price of natural gas fell by 1.8 cent at $2.955 for every 1,000 cubic feet.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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