Crude up on Asian equities

16 February 2010

Written by Kim Bardsley

Crude oil prices climbed during the Asian trading session this morning (February 16th), tracking gains in regional stocks and shares.

Despite Europe's mounting debt crisis, the MSCI Asia-Pacific Index climbed 0.5 per cent during early trading, with Bloomberg data recording a rise in three stocks for every two that fell in the Tokyo-based index.

A report from Barclays Capital expressed confidence that a rise in equities would support demand for crude and associated products such as heating oil.

"The gradual recovery path for global oil demand should continue to spread across regions and products, as reflected in last week’s release of agency monthly reports," analysts wrote.

As European markets opened, crude oil prices on the New York Mercantile Exchange were creeping towards $75 (£47) a barrel, up around 70 cents, while heating oil prices also climbed on the exchange.

It remains to be seen whether the commodity will hold on to these gains during European trading, as the euro is flirting with fresh nine-month lows against the dollar, making dollar-priced commodities less attractive.

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