Oil prices rise, stay above 74 dollars

23rd August 2010, Comments 0 comments

World oil prices pulled back from six-week lows on Monday to stand above 74 dollars, helped by a weaker US currency, analysts said.

New York's main contract, light sweet crude for delivery in October, gained 25 cents to reach 74.07 dollars a barrel.

Brent North Sea crude for October rose 34 cents to 74.60 dollars in early afternoon London trade.

"Crude oil prices rebounded from a six-week low ... supported by a weakening US dollar," said Sucden Financial analyst Myrto Sokou.

Crude futures had fallen on Friday for a third straight session amid worries that weakening growth in the United States could curtail energy demand.

"It seems that the ongoing uncertain economic conditions raise further concerns about the fragile US economic recovery and a potential weak oil demand from the US and eurozone," said Sokou.

Prices could meanwhile head downward once again as oil installations in the Gulf of Mexico have so far avoided disruption amid the onset of the hurricane season.

"Given... the lack of hurricane news, there seems to be more downside pressure than upside," said Serene Lim, oil and gas analyst for ANZ bank in Singapore.


© 2010 AFP

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