PRC: Oil prices climb as traders eye rising demand in far east
Brent Crude oil prices strengthened this morning to trade back above the $112 mark amid hopes for improved growth in global markets, specifically Japan and China.
America’s West Texas Intermediary futures also edged higher, gaining 10 cents a barrel at almost $96 a barrel.
News that Japan, the world’s third largest oil consumer, is planning more economic stimulus was one of a number of developments helping to lift fuel prices.
Japanese demand for oil is also expected to remain stiff as it emerged that there would be no immediate restart of the bulk of the country’s nuclear capacity – at the moment the majority of Japan’s reactors remain idle.
Experts say that, as a result, there will be no change in Japan’s demand for oil and gas until the summer months at the earliest.
Elsewhere there are expectations in the market that Chinese oil demand will be much stronger this year.
Meanwhile oil traders will have to wait an extra day for America’s API inventory report, a weekly reading of the world’s largest oil users consumption, because of the Martin Luther King day public holiday.
Eyes will also be focussed on the initial trading in New York today, as it resumes trading after Monday’s hiatus.
