Oil prices rally in line with equities

20th April 2011, Comments 0 comments

Oil prices jumped on Wednesday in line with strong gains for equities and as the dollar weakened as the market awaited the latest snapshot of energy inventories in the United States.

New York's main contract, light sweet crude for delivery in June, rose $1.37 to $109.65 a barrel.

Brent North Sea crude for June gained $1.58 to $122.90 in midday London trade.

Oil prices were "supported by robust earnings results from Goldman, Intel and a strong rebound in equity markets, while the weak US dollar continues to provide further support," said Sucden brokers analyst Myrto Sokou.

Barclays Capital on Wednesday said the impact on oil demand from rising prices remains a concern.

"Crucially, with forecasts so dominated by the pace of demand growth in coming years, it does start to raise the question of how demand will react to higher prices and which is the key driver of the market," it said in a note.

© 2011 AFP

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