SINGAPORE: Oil was higher in Asian trade on Wednesday but lingering concerns over waning US demand will limit prices, analysts said.
New York's main contract, light sweet crude for June delivery advanced 80 cents to $97.71 a barrel and Brent North Sea crude for July delivery gained 57 cents to $110.56.
US government data released Tuesday showed a plunge in home construction in April, triggering concerns about the health of the world's largest economy.
Housing starts tumbled 10.6 percent from March and building permits, a forward-looking indicator, fell 4.0 percent, the Commerce Department said.
The US is the world's biggest oil consumer.
Apart from the US, there are also growing concerns over the euro-zone economies and China, analysts said.
"Confidence out of the US, the EU and China is slowing down... You have three major factors coming into play," said Jonathan Barratt, managing director with Sydney-based Commodity Broking Services.
"I would like to think oil prices will remain soft," he told AFP.
Investors will be awaiting the release later Wednesday of a widely watched weekly US Department of Energy (DoE) report on oil stockpiles in the country.
Analysts expect the DoE report to show a build-up in crude and other oil stocks which will indicate Americans are consuming less oil.
Copyright AFP (Agence France-Presse), 2011
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