Oil
advanced in Asian trade Tuesday on hopes that the US economy will be able to
find a way out of its slump without more monetary stimulus, analysts said.
In afternoon trade, New York's main contract -- light sweet
crude for October delivery -- added 29 cents to $87.56 a barrel, and Brent
North Sea crude for October delivery gained 49 cents to $112.37.
"It all has to do with confidence and with the fact that
people believe the US has the ability (to bounce back)," said Jonathan
Barratt, managing director with Commodity Broking Services in Sydney.
Last week's speech by US Federal Reserve chief Ben Bernanke,
in which he voiced expectations the economy would grow in the second half of
the year after near-stagnant growth in the first six months, was a boost to
markets, analysts said.
Bernanke's speech in Jackson Hole, Wyoming, in which he also
made no new announcement of monetary stimulus, was interpreted as a sign of
confidence in the world's largest economy, which is also the biggest oil
consumer.
"What you are seeing is more of a response to Bernanke's
comments," Barratt told AFP.
"He feels there is enough evidence to suggest growth,
that's why crude is trickling up," he said.
Meanwhile, the impact of Hurricane Irene on oil operations
was relatively weak, analysts said.
"Although the US East Coast saw widespread power outages
and several refineries and/or terminals shut or cut back operations, Hurricane
Irene packed a much smaller punch than feared," JP Morgan analysts said in
a client note.
Source : AFP
EmpireMoney.com
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