Oil prices held above USD 68 a barrel in Asian trade on Tuesday after rebounding from overnight falls amid hopes of a recovery for the ailing global economy.
In morning trade, New York’s main futures contract, light sweet crude for delivery in July, was up 56 cents to USD 68.65 a barrel. The contract touched USD 70.32 last Friday, its highest level since 4th November.
Brent North Sea crude for July delivery advanced 57 cents to USD 68.45.
Data indicating that the worst may be over for the recession-battered US economy, the biggest in the world, have been stoking hopes for a rebound from the current global crisis.
US employment figures released on Friday said the number of job losses slowed to a better-than-expected 345,000 in May.
The report, seen as one of the best indicators of economic momentum in the United States suggested that the pace of massive job cuts is easing, a positive sign for the US economy, the world’s biggest energy consumer.
“The bounce in commodity prices is likely to be sustained while…expectations of recovery continue to build,” London-based consultancy Capital Economics said in a note.
It cautioned however that “disappointment at the strength of the economic expansion should take the heat out of the latest rally.”
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