Oil prices hover, world shares rise

PanARMENIAN.Net - World stock markets were higher Feb 25 as oil prices eased and Wall Street stabilized after two days of sharp losses amid a political revolt threatening to topple the government of OPEC-member Libya.

Oil prices hovered above $98 a barrel in Asia - down from $103 the previous day - after experts said the crisis in Libya may have cut crude supplies less than previously estimated. In currencies, the dollar was higher against the yen and narrowly up against the euro.

European bourses bounded upward in early trading as investors shook off caution over the events in Libya.

"I think oil prices are going to trade higher, even with Saudi assurances. I think OPEC wants to see higher oil prices," said Tom Kaan of Louis Capital Markets in Hong Kong. "I am not optimistic on airlines or the transport sector."

"Oil is pretty much unpredictable, but in the short term, I do not see oil trading back at $85 a barrel. I think the floodgates are open for oil prices" and they could go as high as $120, Kaan said, AP reports.