SINGAPORE: World oil prices rose in Asian trade Monday afternoon, fuelled by the ongoing conflict in the Middle East after Israel stepped up its military onslaught on Gaza, analysts said.
New York's main contract, light sweet crude for February delivery, was up 1.21 dollars to 47.55 dollars a barrel in the afternoon. The contract closed 1.74 dollars higher at 46.34 Friday on the New York Mercantile Exchange. Brent North Sea crude for February delivery was trading 81 cents higher at 47.72 dollars in afternoon trade Monday. It closed Friday 1.32 dollars higher at 46.91 dollars. "The Gaza conflict added to the geopolitical risk premium embodied in the oil price," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia. Israel poured ground troops into Gaza late on Saturday, stepping up an eight day long bombing campaign of Hamas targets, aimed at ending the Islamist movement's rocket attacks across the border. Despite the spike in oil prices, analysts said the rally was likely unsustainable because of low energy demand caused by a weak global economy.
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