SINGAPORE: U.S. oil prices spring back on Monday to near $86 a barrel, after reducing to a 10-week low in the previous session, as stress in the Middle East region dissolute following the resignation of Egyptian President Hosni Mubarak.
London crude prices comprehensive their rally to near $102 a barrel, after the March contract run out with a gain in the previous session.
Mubarak's departure, after 18 days of accumulation protests, reassured fears over potential supply disturbance and the spread of turmoil to key oil producers in the Middle East area.
"Concerns over a would-be disruption to supplies have eased, and now that the instant threat is out of the way, the market will start focusing again on macroeconomic basics," said Ben Westmore, a merchandise analyst with National Australia Bank.
U.S. crude for March release rose 11 cents to $85.69 a barrel by 0715 GMT, after clear up $1.15 lower at $85.58 a barrel on Friday, the lowest close in 10 weeks and down almost 4 percent on the week.
Brent crude for April delivery jumped 70 cents to $101.64 a barrel, after clear up at $100.94 a barrel in the previous session. The expired March contract rose 56 centsto settle at $101.43 a barrel, off its $102.03 intraday peak.
The spread between the two grades was just below $16, after settling at a evidence of $16.27 a barrel in the previous session. Westmore expects U.S. crude prices to hold in the mid-$80 a barrel series this week, while Brent prices are projected to stay in a range of $98-$102 a barrel.
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