Oil prices rebounded in Asian trade today, with strong US economic data lifting investor sentiment, analysts said.
New York’s main contract, West Texas Intermediate (WTI) crude for January delivery, was up 10 cents at $97.44 a barrel in mid-morning trade, while Brent North Sea crude for January delivery rose seven cents to $109.46.
“Crude oil continued to rally due to optimistic US economic data which lifted markets,” Phillip Futures said in a commentary.
The US jobless rate fell sharply to a five-year low of 7.0 per cent in November and the economy generated 203,000 jobs — well above expectations — providing further evidence of the gathering strength of the world’s biggest economy.
Those upbeat numbers came after figures showing the US economy grew at a speedy annual rate of 3.6 per cent in the third quarter.
“These data signal that the world’s largest consumer for crude oil may upsize their appetite for the commodity following an economic recovery,” Phillip Futures said.
Other analysts said bargain-hunting had also helped bolster prices, which tumbled sharply in the previous day.
Brent crude declined $2.22 in London trade yesterday, weighed down by weak German industrial output.
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