Crude prices just short of 26-month high
23 Dec 2010
Sydney: Crude-oil futures traded just below a 26-month high in Asia Thursday, as signs of improving oil demand in the US and growing optimism of the health of the world economy kept the market on course for further gains.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $90.70 a barrel at 0700 GMT. The contract hit an intraday high of $90.79, just a cent short of the highest level recorded since October 2008.
February Brent crude on London's ICE Futures exchange rose 9 cents to $93.74 a barrel.
According to market analysts, Nymex crude is likely to move higher in the coming sessions, and a breach of the $90.80 threshold would bring the $91 and $92 levels in sight.
Overnight confirmation of another big drop in US oil inventories spurred the bulls. The US Department of Energy said crude stocks fell by 5.3 million barrels in the week ended Friday, following a 9.9 million-barrel plunge in last week's report, the largest decline in eight years.
Commodities analysts say improving economic conditions would support oil prices moving towards and above $100 a barrel next year.
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