Oil moves above $71 a barrel; hits an 8-moth high in Asian trade
11 Jun 2009
Crude oil prices rose further in Asian trade hitting an eight-month high ner $72 a barrel, helped by a bigger-than-expected drop in US crude reserves and a falling dollar.
Light sweet crude for July delivery on the New York Mercantile Exchange gained 7 cents at $71.90, its highest in eight months.
Nort Sea Brent crude for July delivery on the London exchange was 45 cents higher at $71.25.
US crude reserves fell 4.4 million barrels in the week ended 5 June against market expectations of a fall of around 700,000 barrels.
Oil prices have also been boosted by hopes of a global economic recovery.
The International Energy Agency (IEA) which advises 28 nations, mostly developed western nations, raised its consumption outlook for the first time sending signs that the recession is bottoming out.
The IEA raised its estimate for global oil demand by 120,000 barrels a day to 83.3 million barrels a day, driven mainly by gains in the US and China.
Consumption worldwide will contract by 2.9 per cent from last year, the biggest drop since 1981, the IEA said.
