Oil up in Asia on demand hopes

January 3, 2011 12:00 am

, SINGAPORE, Jan 3, 2011 – Oil rose in afternoon Asian trade on Monday on expectations that an improving US economy will lead to higher demand for crude, analysts said.

New York\’s main contract, light sweet crude for February delivery, rose 34 cents to 91.72 dollars per barrel.

Brent North Sea crude for February was up 28 cents at 95.03 dollars.

The two contracts closed 2010 at a two-year high, buoyed by hopes that improved US economic momentum will bolster global growth and translate into higher oil demand, analysts said.

"A stronger US dollar means that the US economy is gaining momentum, which increases the future demand in oil," said Ong Yi Ling, an investment analyst from Phillip Futures in Singapore.

In afternoon Asian trade, the dollar was unchanged from Friday at 81.28 yen, while the euro was at 1.3298 to the dollar, down slightly from 1.3381.

The United States is the world\’s biggest oil consuming nation and the recent cold winter spell in its northeast region also boosted crude prices.


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