World oil prices gained a little yesterday, reversing earlier losses on bargain-hunting, as traders continued to assess the market impact of the EU-IMF euro zone bail-out plan.
US crude added 25 cents to US$77.05 a barrel, having closed up US$1.69 on Monday. Brent North Sea crude rose 35 cents to US$80.47. Oil fell in earlier trade as euphoria over a massive euro zone bail-out gave way to doubt over countries’ ability to reduce their deficits. Meanwhile, the OPEC oil producers’ cartel today held steady its forecast for modest growth in world oil demand this year, noting uncertainty about the global economic outlook. The world oil demand forecast for 2010 will mostly depend on the performance of the US economy, OPEC’s May report said.
The cartel said it was expecting world oil demand growth to grow by 0.9 million barrels per day (bpd) or 1.1 per cent to average 85.4 million bpd for 2010. That was almost unchanged from the previous report. Meanwhile, gold prices soared within sight of a new record high on today as investors sought a safe-haven investment amid deepening concerns about the euro zone debt crisis.
Gold climbed as high as US$1,224.82 an ounce. The precious metal, whose two main drivers are jewelry and investment buyers, hit record highs last year on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar. Heightened concerns about Greece have attracted fresh inflows of cash into gold.
