SINGAPORE, May 24: Oil rebounded in Asian trade today as investors bought into the market after prices fell below USD 90 a barrel the previous day, analysts said.
New York’s main contract, West Texas Intermediate (WTI) crude for delivery in July was up 64 cents to USD 90.54 per barrel while Brent North Sea crude for July gained 92 cents to USD 106.48 in morning trade.
Prices had slumped a day earlier as the dollar rallied on eurozone debt worries, making dollar-denominated oil more expensive and denting demand.
WTI crude fell to USD 89.90 yesterday, its lowest level since October, while Brent tumbled USD 2.85 to USD 105.56.
“Prices have stopped sliding because some investors see this low level as a buy opportunity,” said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.
He said prices remain under upward pressure because of the threat of supply disruptions in the Middle East and contagion risks arising from the eurozone debt crisis.
“The prospect of supply disruptions is still there. The US and European Union embargoes on Iranian oil will still go ahead as planned despite the current talks,” added Shum.
Tough talks aimed at helping resolve the standoff between major producer Iran and the West over Tehran’s controversial nuclear programme entered an unscheduled second day Thursday in Baghdad, with both sides still at odds with each other.
Investors’ attention also remain focused on the eurozone debt crisis.
EU leaders at a summit overshadowed by fears Greece could leave the euro pledged support Wednesday for Athens, as officials behind the scenes considered the doomsday scenario of an exit. (Agencies)
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