| Oil prices up in Asian trade on US housing data | |
| AFP/PTI / Singapore July 20, 2009, 10:00 IST | |
Oil prices rose in Asian trade today, lifted by positive US housing construction data that suggested the crisis-hit housing market was over the worst, analysts said.
New York's main futures contract, light sweet crude for delivery in August, gained 21 cents to $63.77 a barrel.
Brent North Sea crude for September delivery climbed 27 cents to $65.65.
Data released Friday by the US Commerce Department showed construction starts on privately owned homes rose 3.6 per cent in June to a seasonally adjusted rate of 582,000, the fastest pace since November.
The jump in housing starts was much stronger than the 530,000 pace expected by most analysts and followed a revised 562,000 starts in May, up 30,000 from the initial estimate.
"Oil prices drew support from the US housing starts data," the Commonwealth Bank of Australia said in a report.
David Bensimon of financial advisory firm Polar Pacific explained crude markets were currently "in the midst of a consolidation" and could rise in the near term.
"The market has begun a new multi-year advance...there is some potential, if oil holds at (current) levels, for it to move to $80 in the next four to six weeks," he said.
Oil prices have slumped amid the economic downturn after striking all-time highs above $147 a barrel a year ago, but have slowly clawed back ground on hopes that the global recession is on the mend.
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