Oil prices rise after hitting multi-week lows

PanARMENIAN.Net - Oil prices rose in Asian trade Tuesday, March 5, on bargain hunting after hitting multi-week lows, analysts said, according to AFP.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in April added 20 cents to $90.32 a barrel in the afternoon and Brent North Sea crude for April delivery increased 46 cents to $110.55.

"We are seeing some bargain hunting after Brent and WTI prices slid," said Ker Chung Yang, a senior investment analyst at Phillip Futures in Singapore.

Brent prices on Monday reached $109.61 a barrel - the lowest point in six weeks, and WTI prices hit a two-month trough of $89.51 a barrel.

Sentiment was hurt by economic strains in China and the United States, the world's two biggest crude consuming countries.

China's official purchasing managers' index Friday showed growth in manufacturing activity slowed last month, suggesting a recent pick-up in the world's number two economy is weaker than initially thought.

Economists also warned that across-the-board cuts of $85 billion in federal spending in the United States that kicked in on Friday could lead to job losses and hinder growth in the still fragile economy.

U.S. President Barack Obama on Monday said the cuts would "eventually" cause deep pain, and again pitched his plan for a compromise with Republican lawmakers.