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Journalism of Courage
Oil eased in Asian trade after surging to USD 82,its highest level in a year as investor sentiment received a boost from a decline in US energy reserves,analysts said.
New York’s main contract — light sweet crude for December delivery — sank 11 cents to USD 81.26 a barrel. The contract hit USD 82 in Wednesday’s trade,its highest level since October 2008.
Brent North Sea crude December delivery eased two cents to USD 79.67 a barrel.
Both contracts had closed higher yesterday,lifted by a drop in US energy stocks which were seen as a sign of improved demand in the world’s biggest energy user.
Data released yesterday by the Department of Energy showed US gasoline reserves sank by 2.3 million barrels in the week to October 16. That was more than the 800,000 barrel drop expected by most analysts.
Oil has been rising steadily in recent days,fuelled by a weak US currency which makes dollar-priced crude cheaper for holders of stronger foreign units.
But there are doubts on whether oil prices can be sustained at levels above USD 80 given the fragile state of the global economy,despite some signs of a recovery.
Oil prices tumbled from historic highs of more than USD 147 in July 2008 to about USD 32 in December because of the global recession but have since risen on hopes of recovery.
