Oil prices extend gains; Brent above $110

7th August 2012, Comments 0 comments

Oil prices rose further Tuesday after recent sharp gains on concerns over potential tight supplies despite a weak demand environment and thanks to improved sentiment on the eurozone, analysts said.

Brent North Sea crude for September delivery gained $1.07 to $110.62 in London afternoon deals, the first time it has traded above $110 since May 16.

New York's main contract, WTI for September, rose 45 cents to $92.65.

Prices gained ground Monday on rumours of an attack on Syria's leader Bashar al-Assad and as a tropical storm looked likely to grow into a hurricane that could hit Gulf of Mexico oil operations.

Earlier reports from the US showing an improving jobs sector and hopes that the European Central Bank may soon take action to relieve the eurozone debt crisis also spurred buying.

"Crude oil prices are extending their gains," said Sucden Financial Research analyst Jack Pollard.

"Whilst reports of continued unrest in the Middle East are being touted (for the gains), I feel this is mainly a case of ... the recent, broader shift in macro sentiment, namely regarding the eurozone."

© 2012 AFP

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