Light oil prices are holding around the $86 mark in trading on Tuesday as investors await the latest US crude oil stock data from a government report due out on Wednesday.
Light crude oil futures for June 2010 delivery was at $85.93 a barrel at midday Singapore time on the NYMEX. Yesterday, Light oil prices reach $87.15 in busy trading, befor dropping back slightly.
“The previous high was $87.09 and after that the market just dropped and we saw the same thing when the market went up to $87.15 (Monday) before going back down.” said Clarence Chu, a Singapore-based oil trader with Hudson Capital Energy.
“Throughout this move higher, signs that the world economy is recovering have trumped everything else,” Cameron Hanover said in a report. “The economy has so far ignored signs that higher oil prices are making it that much harder for the recovery to maintain its pace.”