Oil prices jumped above US$70 a barrel Monday in Asia on investor expectations a recovering global economy will boost crude demand.
Benchmark crude for September delivery was up 73 cents to $70.18 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange.
Prices may test an eight-month high of $73.23 a barrel in the coming days, but dismal consumer sentiment in the U.S. will likely weigh on demand and send prices back into the $60s, said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
"It will be difficult for oil prices to sustain in the $70s given the weak fundamentals," he said.
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