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| Oil hovers above $64 after plunging over past week |
| AP/ PTI / Singapore Jul 07, 2009, 10:13 IST |
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Oil prices hovered above $64 a barrel today in Asia after falling 12% in a week on investor doubts about a global economic recovery.
Benchmark crude for August delivery rose 26 cents to $64.31 a barrel by mid-morning Singapore time in electronic trading on the New York Mercantile Exchange. On Yesterday, it fell $2.68 to settle at $64.05.
Prices reached an eight-month high last week above $73, but quickly tapered off as dismal unemployment figures suggested that the US and Europe would be slower to rebound out of recession than expected.
Some analysts expect prices to rally again soon on signs that the worst of the economic slowdown is over.
"I think the market will look for some positive news and head back up toward $70," said Gerard Rigby, an energy analyst at Fuel First Consulting in Sydney. "There's been some profit taking in the last week, but I don't think there was a real change in sentiment".
More attacks on Nigeria's oil infrastructure helped boost prices. Nigeria's main militant group said yesterday it seized a chemical tanker with six foreign crew members aboard and attacked a second oil facility.
Investors will be looking to a weekly inventory report from the Energy Department's Energy Information Administration tomorrow for signs that crude demand may be growing.
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