Oil rebounds in Asia on higher Chinese demand
SINGAPORE: Oil rebounded in Asian trade Tuesday on surging crude demand from China, the world's second-largest economy, analysts said.
New York's main contract, light sweet crude for July delivery, gained 30 cents to $98 a barrel, while Brent North Sea crude for July delivery rose 61 cents to $110.71.
The "fundamental backdrop for oil remains firm, with an added layer of support coming from the latest Chinese data for April pegging demand at third-highest level ever," said a Barclays Capital report.
"Chinese apparent oil demand in April reached an average of 9.37 million barrels per day, marking an 8.3 percent rise from a year ago due to increased demand during the spring sowing season," said Shailaja Nair, an analyst with energy information provider Platts.
China is the world's second-largest economy and is Asia's top oil consumer.
Analysts said the market was also awaiting more data on oil demand, including those from the American Petroleum Institute.
However, Europe's debt problems and a stronger dollar had been limiting oil price gains.
A stronger US currency makes dollar-priced crude more expensive, leading to lower demand and softer prices.
Copyright AFP (Agence France-Presse), 2011
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