Oil prices recover
Market watch top headlines
WASHINGTON, Feb 22 AFP
February 23 2013, 09:24AM
Oil prices have recovered slightly, after two days of losses stoked by concerns that prices had outrun weak growth in demand.
New York's main contract, WTI crude for April, gained 29 cents to $US93.13 a barrel on Friday.
In London, Brent North Sea crude for April delivery finished at $114.10 a barrel up 57 cents from Thursday.
The modest rebound came after New York prices fell more that $4.50 a barrel over the past two days.
"We had a dramatic selloff this week and we are just seeing some short-covering, some profit-taking," said John Kilduff of Again Capital, adding that $93 "seems to be the new support level."
Jason Hughes, head of premium client management at IG Markets in Singapore, said it was "possible that we do have the bargain hunters looking to pick up oil at these levels".
Traders brushed off more data showing a prolonged recession in the eurozone, getting instead encouragement from a rise in German business confidence, said analysts.
"With the equity markets focused more on German business confidence than downward revisions to eurozone economic forecasts, the petroleum markets are seeing at least a limited bounce after the Wednesday-Thursday drop," said Tim Evans at Citi Futures.
"The height of the bounce - whether today or into next week - will provide an indication of whether oil market bullish sentiment is resilient or whether further urgent long liquidation is on tap."