Publications
Partners
Singapore - Oil rose in Asia on Tuesday on hopes for a Chinese stimulus package and simmering geopolitical tensions following reports of a US Navy ship firing on a boat off Dubai's coast, analysts said.
New York's main contract, light sweet crude for delivery in August was up 17 cents to $88.60 and Brent North Sea crude for September delivery gained 30 cents to $103.67.
Lacklustre growth figures from China leading to hopes for government intervention, coupled with the US Navy incident in the geopolitically sensitive Middle East, were supporting crude, Phillip Futures said in a report.
"Oil prices... (were) lifted by hopes that signs of economic slowing will prompt stimulus measures, especially in China, and by news a US Navy vessel off the United Arab Emirates fired on a fishing boat that failed to heed warnings," the report said.
Official figures released Friday showed China's economy growing at its slowest pace in more than three years in the second quarter of 2012, disappointing traders despite meeting analyst forecasts.
The lacklustre growth figures led Chinese Premier Wen Jiabao to call Sunday for greater efforts to strengthen economic growth in the world largest energy consumer.
In the Middle East, tensions were racked up a notch on Monday after an Indian fisherman was killed and three more wounded when a US Navy ship fired at their motorboat off Dubai.
US defence officials said the vessel had ignored warnings not to approach the refuelling ship USNS Rappahannock near the UAE port of Jebel Ali, and that sailors on board the American vessel feared it could pose a threat.
The incident came amid tensions between Iran and western powers over Tehran's nuclear programme and threats to shut down the Strait of Hormuz global oil shipping chokepoint.
