Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Oil hovers around 79 dollars in Asian trade

SINGAPORE, Jul 26 – Oil prices extended gains in Asian trade on Monday as investors awaited the European market\’s reaction to last week\’s bank stress test results and as a US storm threat eased, analysts said.

New York\’s main futures contract, light sweet crude for delivery in September, edged up nine cents to 79.07 dollars a barrel, while Brent North Sea crude for September rose 19 cents to 77.64 dollars.

"The oil market is likely to extend its gains, although they could be quite muted, while waiting for the European market to open. Support will come from the strong US equities markets on Friday," Serene Lim, a Singapore-based oil analyst with Australia\’s ANZ bank, told AFP.

The market\’s gains on Friday were helped by rising US equities as encouraging company earnings propelled Wall Street stocks to their best levels in a month but were pared back after the stress test results were released.

Many analysts questioned the rigour of the assessments after the results showed that seven banks, mainly in Spain, had failed the tests, out of 91 banks assessed for resistance to economic upheaval.

"Up to now the Asia markets have some scepticism that the stress tests on the European banks were not strict enough so they will be looking at the European reaction," Lim said.

Prices were also capped after the threat of Tropical Storm Bonnie eased at the weekend and fears that it could damage oil production platforms in the Gulf of Mexico faded, Lim said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...