oil prices top $us82 a barrel

Good timing , or what ?



Oil prices rose in Asian trade, lifted by signs of stronger demand as the world economy recovers from recession, analysts said.

New York's main contract, light sweet crude for April delivery, added nine US cents to $US82.20 a barrel.

London's Brent North Sea crude for April was up nine cents to $US80.37.

"There is a general consensus that the global economy is growing," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"What has also helped the bullish sentiment is the US oil inventory report," he added.

"Market participants are bullish at this point, based on economic recovery optimism, and are thinking ahead about the summer driving season raising gasoline demand in the US."

The US Department of Energy's (DoE) weekly oil inventory report on Wednesday showed a surprise drop in petrol stockpiles, a key factor behind the large supply backlog, indicating strengthening demand.

Petrol stockpiles tumbled 2.9 million barrels in the week to March 5, surprising the market as most analysts had expected an increase of about 100,000 barrels.

The DoE also said distillates were down 2.2 million barrels, far more than predictions of a 700,000-barrel drop.

US crude oil inventories meanwhile climbed 1.4 million barrels, which undershot analysts' consensus forecast for a 1.7-million-barrel gain.

The market is waiting for the results of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) next Wednesday, analysts said.

Qatar's OPEC minister has said he did not anticipate the cartel would change its official output quota at the meeting in Vienna.

AFP