Oil above $67 in Asian trade

Oil prices hovered above $67 in volatile Asian trade today as investors remained concerned over the economic outlook despite signs of a recovery, analysts said.

New York's main futures contract, light sweet crude for delivery in September, was up 45 cents to $67.20 a barrel in morning trade.

Brent North Sea crude for October delivery advanced 18 cents to $70.72.

Traders remained cautious even as crude markets "sold off quite heavily in the past few days," said Ben Westmore, a minerals and energy economist with the National Australia Bank.

"There is so much uncertainty and people are unsure of the outlook," he said.The oil market largely ignored a rebound Monday in a key US manufacturing survey which showed improvement in an index measuring general business conditions.
 
The Federal Reserve Bank of New York said the Empire State Manufacturing Survey's general business conditions index increased 13 points to 12.1, its highest level since November 2007.

 

"Still, the pall of scepticism, along with a rally in the $, should combine to keep oil prices under pressure in the very short term," said Mike Fitzpatrick of MF Global.