Singapore: Oil prices climbed in Asian trade today after global equities showed signs of shaking off recent nervousness and brought an appetite for risk back to the markets, dealers said.
At 1:40 pm (1110 IST) New York’s main oil futures contract, light sweet crude for delivery in April, was up 31 cents to $56.90 a barrel from $ 56.59 in late US trades.
Brent North Sea crude for May rose 49 cents to $ 61.01.
“It seems in Asia, there is a big increase in risk appetite ... seen in the gains in equities, declines in the prices of US Treasuries (bonds), resumption of the yen carry trade and gains in commodities,” said CFC Seymour chief investment analyst Dariusz Kowalczyk.
The increase in risk appetite was driven by Wall Street’s near one per cent gains yesterday, boosted by several merger and acquisition deals and stronger sentiment in European markets, he said.
“The improvement in confidence of traders in US and Europe is showing in Asian trading as well, evident in the increase in risk appetite and rising crude prices. That’s why crude is touching $ 57. There’s no other market fundamental pushing the oil prices,” Kowalczyk said from Hong Kong.
A Societe Generale report released yesterday said the short-term momentum in oil is more negative than market fundamentals. They expect crude price to test the 55-dollar level this week and then rebound.