Light crude oil futures trading around $69 Monday, Asian stocks rally

Light crude oil futures are currently trading around $69 a barrel as investors read recent positive corporate earnings as a further sign of an economic recovery that will stoke fuel use.

Asian stocks rose for the ninth day in 10 on Monday, with investors still focused on upward momentum in corporate earnings and moving money into riskier, higher-yielding assets.

US crude prices for September delivery, which has risen in eight of the last nine trading days, climbed 63 cents to $68.68 a barrel by 0553 GMT, the highest since early this month. London Brent crude rose 77 cents to $71.09.

"Oil's rally has again been supported by external factors, such as positive macroeconomic data and rally in the equities markets, and those factors, along with the US dollar, should again set the tone for oil this week," said Toby Hassall, a commodities analyst at Commodities Warrants Australia.

Rosy macroeconomic data and upbeat earnings results have buoyed hopes of a rebound in the economy, prompting investors to bet that fuel demand will recover later this year. Oil prices have climbed about $10 since a mid-month low.

But Wall Street may take a breather this week after an earnings driven rally lifted the major US stock indices to their highest levels in months.

Some analysts said a faster rebound in Asian economies, led by China, would offer further support for oil prices in coming months.

"The central factor in determining the speed of adjustment in oil products will be the pace of recovery in Asia," Barclays Capital said in a research note. "The sensitivity of oil demand to economic growth is greater in Asia than in other regions, and the tendency for economic growth to surprise consensus estimates on the upside also appears to be greater in Asia."