Oil flat, traders anticipate rally

15 February 2010

Written by John King

Crude oil prices recovered from early losses to hold steady around $74 (£47) a barrel during the electronic trading session of the New York Mercantile Exchange this morning (February 15th).

Heating oil prices were also little changed on the exchange, as traders forecast a potential rally in energy prices.

Speaking to Reuters, Mark Pervan, senior commodities analyst at ANZ in Melbourne, said there was little downside risk for oil, with Asian economies expected to shore up energy demand in 2010.

"China, Japan, Korea, Taiwan and other Asian economies are going to perform very well this year notwithstanding what the Chinese government is doing to control growth," he said.

On Friday (February 12th), China issued further instructions for banks operating in the country to increase their deposit ratios in a move designed to dampen speculative lending.

It is the second time this year the powerhouse economy has initiated such an action.

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