Oil higher in Asian trade but investors cautious
Singapore: Oil was slightly higher in Asian
trade on Monday but investors remained cautious over the outlook
for energy demand as worries remain over the strength of the
US economic recovery, analysts said.
New York's main contract, light sweet crude for December
delivery gained 25 cents to USD 77.25 a barrel.
Brent North Sea crude for December delivery was two
cents higher at USD 75.22.
While data released last on Thursday showed the US has
emerged from a prolonged recession, consumer spending, which
accounts for two-thirds of the nation's economic activity,
fell in September.
"I think the reality is that the economic signals out
there have been mixed," said Victor Shum, a Singapore-based
analyst with energy consultancy Purvin and Gertz.
"Last week there was positive US (gross domestic
product) but consumer spending was quite negative."
Shum added that "even though there are signs of economic
recovery, the recovery appears to be on a shaky ground and
also somewhat uncertain."
The US said on Friday consumer spending in the world's
biggest economy and energy user fell for the first time in
five months in September.
A day earlier, the Commerce Department said the US
economy grew at a seasonally adjusted 3.5 percent in the
September quarter from the previous three months.
Bureau Report