Oil rebounds in Asia after overnight falls
Oil rebounded in Asian trade on Wednesday after overnight falls in reaction to weaker US consumer confidence, analysts said.
New York’s main contract, light sweet crude for November delivery, rose 26 cents to USD 66.97 a barrel.
Brent North Sea crude for November delivery gained 29 cents to USD 65.78 a barrel.
Crude prices tumbled on Tuesday after a widely watched US consumer confidence index fell to 53.1 in September from 54.5 in August, overshadowing some positive data on the housing front, analysts said.
The figure was weaker than the 57.0 expected on Wall Street, and suggested consumers may be cautious in resuming spending, which is key to economic recovery.
“Lack of conclusive data led to a situation where on one hand commodities and equities mostly inched down, but on the other corporate credit was mixed and emerging market assets gained,” said Dariusz Kowalczyk, chief investment strategist with SJS Markets financial firm.
“Clearly, while US and global recovery is continuing, it is being built on a shaky ground. We bet that it will
continue, but inconsistent macroeconomic indicators will keep
investors on edge.”
Investors are awaiting other key data to be released this week for a better gauge on the pace of recovery in the
US, the world’s biggest energy user.
