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Oil prices hover over $70

03 August 2009 08:01 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Crude oil traded above $70 a barrel for the first time in a month on speculation fuel demand will increase, as equities in Asia gained for a third day amid signs the global economy is recovering, Bloomberg reports.

Oil rose ahead of a U.S. manufacturing index due today that may show conditions in July were the best in almost a year. The MSCI Asia Pacific Index climbed as factory output in China expanded. Oil may gain more than other commodities on a rebound in demand, said Nouriel Roubini, the New York University economist who predicted the financial crisis.

Crude oil for September delivery rose as much as 80 cents, or 1.2 percent, to $70.25 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at $70.15 a barrel at 12:40 p.m. in Singapore. Crude reached $71.85 a barrel on July 1.

The contract rose 3.8 percent to $69.45 a barrel on July 31, the highest settlement since June 30, after the dollar fell and a report showed the U.S. economy shrank less than forecast in the second quarter. Futures are up 57.3 percent this year.

Brent crude oil for September settlement gained as much as 78 cents, or 1.1 percent, to $72.48 a barrel on Londonâ€™s ICE Futures Europe exchange. It traded at $72.28 a barrel at 12:25 p.m. Singapore time.