Brent crude oil rises above $62 a barrel as Asian markets open strong
Oil prices rose in early trading on Monday as Asian markets opened strongly into a holiday-shortened week and as consensus spread thatBrent crude prices would likely remain above $60 for the rest of theyear.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3 percent in early trade, while Japan’s Nikkei stock average was up 0.4 percent ahead of a Japanese holiday on Tuesday.
Front-month Brent crude prices climbed over a percentage point to above $62 per barrel after markets jumped more than 5 percent on Friday in lighter-than-usual pre-holiday volume that exaggerated the move higher.
Analysts said that Brent had received broad support after testing $60 abarrel at five-and-a-half year lows earlier this month and that consensus was growing that prices would likely remain above that level for the rest of the year.
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Reuters technical analyst Wang Tao said that Brent prices would receive support at $60.77 a barrel and that they were trending up towards a target of $63.52 per barrel.
Front-month Brent was trading at $62.04, up $0.66 at 0210 GMT, andU.S. WTI’s front-month contracts were up $0.69 at $57.82 a barrel.
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