Oil Prices Higher In Asian Trade
Oil prices turned higher in Asian trade Thursday, lifted by a stronger euro and a rebound in regional stocks after a three-day sell-off on renewed fears over Eurozone debt, analysts said.
The European Central Bank (ECB) indicated it could step in if needed, soothing fresh market worries and lifting equities, while a stronger euro boosted demand for dollar-priced commodities such as oil.
New York's main contract, West Texas Intermediate crude for delivery in May was up 41 cents to $103.11 per barrel while Brent North Sea crude for May gained 27 cents to $120.45 in the afternoon.
"Prices were broadly supported by some renewed economic optimism and risk appetite in Europe," said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at Ernst and Young.
"Crude markets remain broadly balanced with supply worries being effectively countered by demand worries, particularly with regard to the U.S. and Europe," he added.
Market worries over a fresh Greek-style debt crisis in Spain were allayed by comments from ECB board member Benoit Coeure indicating the lender would not rule out additional purchases of sovereign debt.
Coeure also suggested that markets were overestimating the extent of Spain's problems.
The euro firmed against the dollar and yen in Asian trade Thursday as risk appetite grew on strong Australian jobs data and easing fears over Europe's debt problems.
A stronger euro makes dollar-priced oil cheaper, boosting demand and pushing prices higher.
Oil prices also remain propped up by supply concerns in the Middle East, according to analysts.
Major crude producer Iran is expected to meet representatives of six powers -- Britain, China, France, Germany, Russia and the United States -- this weekend for talks about its controversial nuclear program.
The Islamic republic has vehemently denied Western assertions it is building a nuclear bomb and has threatened to shut the strategic Strait of Hormuz, a major passageway for a fifth of the world's oil supply, if it is hit with further sanctions.
The market ignored the latest data showing weaker energy demand in the United States, the world's biggest economy and oil consume