Asian market rally pushes oil up

Oil prices are still far from the peak of $147 a barrel hit in July last year

The price of oil has risen towards $69 a barrel after investors were buoyed by rallying stock markets in Asia.

US light crude oil for September delivery climbed 63 cents to $68.68 a barrel. London Brent crude rose 77 cents to $71.09 a barrel.

Asian markets experienced strong gains on Monday amid hopes that corporate earnings will be better than expected.

Japan's Nikkei 225 index closed 144 points higher at 10,088.66. Hong Kong's Hang Seng was up 1.35% at 20,251.62.

Some analysts said a faster rebound in Asian economies would offer further support for oil prices in coming months.

"The central factor in determining the speed of adjustment in oil products will be the pace of recovery in Asia," Barclays Capital said in a research note.

"The sensitivity of oil demand to economic growth is greater in Asia than in other regions, and the tendency for economic growth to surprise consensus estimates on the upside also appears to be greater in Asia."

Oil prices are still far below the peak of $147 a barrel that was reached in July last year.