SINGAPORE (Commodity Online) : Global oil prices advanced past $81 a barrel mark in Asian trade Monday mainly on a weak dollar as markets await the outcome of a crucial Fed meeting.
Light sweet crude for September delivery was seen trading at $81.01 a barrel at 11.30 a.m Singapore time while Brent crude for September was at $ 80.43 a barrel in London.
Analysts said newly developed geopolitical tensions in the Middle East following Iran’s display of domestically made submarine, possibly to defend its nuclear programme, had also helped the black gold.
Weak trends in Asian stocks market are likely to help oil later in the day, they said.
In a sign that most investors remain bullish on oil prices, open interest positions remained heavy at the September $85, $90 and $95 call options while money managers also increased net long crude oil positions on the NYMEX in the week through 3 August.
On the weather front, Tropical Storm Colin weakened to a tropical depression in the Atlantic Ocean yesterday as it passed west of Bermuda, the National Hurricane Center said, adding the system could dissipate later in the day.
On Friday, oil prices tumbled in response to the weaker-than-expected US jobs report. New York's main contract, light sweet crude for delivery in September, fell $1.31 to settle at $80.70 a barrel.
In London, Brent North Sea crude for September delivery fell $1.45 to settle at $80.72.
