Oil prices hit multi-month peaks

LONDON (AFP)

New York’s main futures contract, light sweet crude for delivery in May, bounced as high as 52.90 dollars, the highest point since late November.

In later trade, Brent oil stood at 51.36 dollars a barrel, up 14 cents from Friday’s close, and New York crude was a marginal two cents higher at 52.09 dollars.

Global stock markets roared higher on Monday as investor optimism grew ahead of the official launch of a 500-billion-dollar (366-billion-euro) US government plan to purge banks of toxic assets.

“Right now, the crude oil market is primarily driven by the financial markets. What we are seeing in the crude oil market is a financial rally,” said Victor Shum of energy consultancy Purvin and Gertz.

AFP