Oil trades higher as G-8 to discuss soaring prices
Oil prices rose in Asian trading on Tuesday ahead of closely-watched talks on soaring crude prices by leaders of the world's rich industrial nations.
New York's main oil futures contract, light sweet crude for August delivery, was 67 cents higher at US$ 142.04 a barrel after slumping US$ 3.92 to close at US$ 141.37 yesterday at the New York Mercantile Exchange.
Brent North Sea crude for August was 48 cents higher at US$ 142.35 from a drop of US$ 2.55 to USD 141.87 a barrel Monday in London.
"The market is still down quite a bit from where it started off yesterday in Asia," said Dave Ernsberger, Asia director of global energy information provider Platts in Singapore.
The New York contract struck a record G8) leaders from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States meeting in Japan were to focus the second day of their summit on record oil and food prices. The crisis is fuelling inflation, sparking food riots and threatening to damage global economic growth.
"The leaders are scheduled to discuss the world economy and focus on how to deal with inflation and a surge in prices of primary commodities," including oil, said a Japanese foreign ministry official.
"I think what people are looking at this morning is what the policy makers are saying," Ernsberger said. "The G8 leaders are clearly trying to talk this market down.