Oil up as US jobless claims fall

Oil up as US jobless claims fall

US Federal reserve remains cautious about country’s recovery , citing high unemployment, lower housing wealth, and tight credit.

June 25, 2010 10:52 by Rasha Reslan

Oil prices rose in Asian markets Friday, on optimistic US labor data, the AFP reported Friday.

Despite the positive investor sentiment, the US Federal reserve voiced concerns that America’s economy continues to struggle with recovery, according to comments made by a Singapore-based analyst with Purvin and Gertz, energy consultants. The Federal reserve earlier in the week announced key interest rates would remain at historic lows of between zero and 0.25 percent.

In spite of the cautious posture of the Feds, investor confidence rose on data that US jobless benefits claims fell more than economists had expected. The optimism in the US jobs market is a positive indicator for oil demand.

New York’s main contract, light sweet crude for August delivery reached $76.65 a barrel, and Brent North Sea crude for August delivery was up 19 cents to $76.66 a barrel.