Oil bucking trend as prices hit $60

Oil prices jumped over the $60 barrel mark in New York trading yesterday. The foray above the psychologically significant benchmark was brief, but sends a positive signal to exploration and production companies that swingeing budget cuts are likely to be reversed for the second half of the year.

Gulf producers can thank the Chinese industrial powerhouse for the recession-defying jump. With American consumption at a low, the news on Tuesday that China’s April imports were up 14% year-on-year, coupled with reports that car sales are running at record levels boosted confidence in the oil futures contracts.