Crude oil prices hover near $78

03/11/2009

Oil prices traded at close to $78 per barrel this Tuesday (November 3rd), as the market welcomed improved data about the US economy.

Benchmark US crude oil for December delivery was trading at $77.70 per barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange, a fall of 43 cents, reported the Associated Press.

On Monday, the contract had settled at $78.13, following a $1.13 rise in price per barrel.

Crude investors may be hoping for increased oil demand as the US economy showed encouraging signs. Manufacturing activity grew at the fastest pace in three years in October, the Institute for Supply Management reported.

In a report Seattle-based Sander Capital Advisors said: "Oil was just really following the equities markets and overall opinion on the future of the US economy."

Yesterday it was reported that the Emirates National Oil Company had sealed a £2.35 billion takeover deal of Dragon Oil.