Oil prices growth to $60.30 on plans for practice US productive data

Ravi Jain editor SINGAPORE www.mcxbaba.com
SINGAPORE: Oil prices outlined up in expectation of firm U.S. economic data later on Tuesday, with trading thin due to a public holiday in Japan and as traders begin ultimate their 2014 carriages, ahead of Christmas and the New Year.

Front-month U.S. WTI crude futures rose over a dollar to a affair high of $56.85 a barrel before downhill back to $55.79 at 0645 GMT. Brent crude was up 19 cents at $60.30 a barrel.

Analysts said expectations of firm U.S. economic data anon in the day had pushed prices higher.

“The focus of today would likely come from U.S. durable orders and U.S. GDP figures. Durable goods orders detail a strong manufacturing sector which implies a higher streamlined use of crude oil,” said Singapore-based Phillip Futures in a report on Tuesday.

“With the U.S. economy picking up, we expect the sculptures to be favorable.”

Tuesday’s price rises watched a volatile session on Monday, when Brent prices first jumped to almost $63 a barrel on the back of strong international market performances before groundward back to not much over $60 after Saudi Arabia’s powerful oil OPEC would not cut production at any price.

“Brent could drop below $60 per barrel over the next six months, and WTI could fall to $50, as global oil inventories build sharply from here,”

“The faster the oil price drops, the larger the damage to the global oil industry. Oil could return sharply by the end of 2015,” it added.

While the reluctance of originator club OPEC to cut output has pulled down prices, oil could receive some ground from falling activity in the United States, where many drillers are struggling to make money at prevailing price levels.

“U.S. oil drilling has begun to fall sharply. We expect this fall to continue apace throughout Q1, unless there is an unexpectedly early move up in oil prices,”