Oil hovers around USD 79 in Asia

Oil hovers around USD 79 in Asia

New York's main contract, light sweet crude for September delivery, was down 14 cents at USD 79.16 a barrel, while London's Brent North Sea crude for September dropped 21 cents to USD 77.61.

Prices were meeting resistance at USD 80 after soaring more than three per cent overnight on rising US equities and a possible storm threat, said Ong Yi Ling, an investment analyst with Phillip Capital.

"I think that if you see an upside, it's pretty much capped. The European stress tests results is something that investors would really look at," Singapore-based Ong told AFP.
"General market sentiment is positive but because of the fact that it has been largely considered and possibly priced in, the risks on the downside would possibly be there."
Wall Street stocks sharply rallied as sentiment was boosted by strong corporate earnings.
The Dow Jones Industrial Average was up more than 200 points, or two per cent, in the final hour of trade.

Major US companies AT&T, Caterpillar and 3M all exceeded analysts' profit projections, bolstering recovery hopes.
Investors will next turn to the results of "stress tests" from the London-based Committee of European Banking Supervisors due later today for a clearer picture of the region's economic outlook.

The tests conducted by national regulators on 91 European Union institutions that represent 65 per cent of the EU banking sector are designed to assess the capacity of major European lenders to withstand economic or financial crises.