Trailing positive data of robust US home and auto sales reports that propped up Wall Street, oil prices have rebounded to levels of US$74. New York's main contract, light sweet crude for delivery in July moved up to US74.2 and London's Brent North Sea crude for July rose to US$74.9.; on news that pending US home sales rose for the third straight month in April and American car companies reported double-digit jumps in sales in May. The recent trend in crude oil prices has been to rise with the release of every good economic news from the major economies on the supposition that a recovery in economic growth will lead to stronger demand for oil.
Oil prices dipped this morning in Asia in tandem with Asian stock markets, which traded lower early Friday. The cessation on new drilling could slow oil production in the Gulf and boost oil prices. This freeze follows Energy Information Administration’s report that stocks of crude oil shrank by 1.9 mln barrels last week and gasoline inventories fell by 2.6 mln barrels.