Oil prices extend rise above $32 in Asia on demand hopes

SINGAPORE (APP) - Oil prices extended their rally in Asia Monday buoyed by hopes of extra stimulus measures in the eurozone and Japan that could help boost demand in the face of a global supply glut.

Prices ended on a buoyant note Friday, with the US benchmark West Texas Intermediate (WTI) for March delivery soaring nine percent to $32.19 a barrel, while Brent soared 10 percent to $32.18.

The upward momentum continued in Asia on Monday, with WTI up 46 cents, or 1.43 percent, at $32.65 and Brent 56 cents, or 1.74 percent, higher at $32.74 by 0650 GMT.

Michael McCarthy, chief market strategist at CMC Markets Australia, said a report showing that private sector business activity in the eurozone continued to expand in January boosted hopes for oil demand catching up with the oversupply.

Data monitoring company Markit said its closely watched composite Purchasing Managers Index (PMI) fell to 53.5 points in January from 54.3 in December. While the figure was an 11-month low it was still well above the 50-point level that separates growth and contraction in the 19-nation bloc.