Oil above $84 as stocks rally, airports open

[April 21, 2010]  BANGKOK (AP) -- Oil prices surged above $84 a barrel Wednesday in Asia as stock markets rallied on strong corporate earnings and more airports opened in Volcanic ash stricken Europe, easing fears of dampened demand for crude.

Benchmark crude for June delivery was up 48 cents at $84.33 at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. It rose 72 cents to settle at $83.85 a barrel on Tuesday. Trading in the May contract has now shifted to the June contract.

Oil prices had cooled over the last two weeks, tumbling for eight of the past 10 trading days since hitting $87 a barrel earlier this month.

Analysts say the volcanic eruption in Iceland that shut down air traffic in much of Europe since last week cut demand for jet fuel. But flights have now begun landing in cities such as London and Paris though some European airports remained shut.

Also boosting sentiment in oil markets were gains in Asian stocks after Goldman Sach's first-quarter corporate profit numbers overshadowed ongoing concern about fraud charges against the investment bank. Apple Inc., meanwhile, shattered expectations with a 90 percent leap in net profit for the most recent quarter, boosting technology shares.

In other Nymex trading in May contracts, heating oil rose 1.8 cents to $2.199 a gallon and gasoline gained 0.9 cents to $2.29 a gallon. Natural gas fell 1 cent to $3.965 per 1,000 cubic feet.

In London, Brent crude's June contract was up 73 cents at $85.52 on the ICE futures exchange.

[Associated Press]

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