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Journalism of Courage
Oil prices rose in Asian trade on Tuesday but remained below 50 dollars a barrel as developments in the troubled US auto industry kept global markets on edge,analysts said.
New York’s main futures contract,light sweet crude for May delivery,rose 55 cents to 48.96 dollars a barrel. It shed 3.97 dollars in US trade on Monday to fall under 50 dollars for the first time since March 18.
Brent North Sea crude for delivery in May climbed 65 cents to 48.64 dollars after tumbling 3.99 dollars in London overnight.
“It’s part of the noise of trading volatility,” said Victor Shum,senior principal at energy consultancy Purvin and Gertz in Singapore.
“The news this week is really focused on the troubles with the US automakers.”
Global financial markets went into a tailspin after the US government said yesterday it may pull the plug on aid to American auto giants General Motors and Chrysler if they fail to come up with better restructuring plans.
Shum said oil prices were unlikely to rise above 50 dollars again this week as the global economic outlook remains bleak.
