SINGAPORE: Oil rose in Asian trade Wednesday on hopes of a resolution to the Greek debt crisis, analysts said.
New York's main contract, light sweet crude for July delivery, rose 30 cents to $103 a barrel and Brent North Sea crude for July delivery gained 31 cents at $117.04.
"In the beginning of this week, we saw cautious optimism that Greece might receive a second bailout... (which) caused crude prices (Nymex) to rise above $102 per barrel yesterday," said Ong Yi Ling, a Singapore-based commodity analyst for Phillip Futures.
Crude prices are expected to stay high, supported largely by steady demand in the emerging economies and possible moves by Oil cartel OPEC to curb production, analysts said.
"Long term basic Oil fundamentals still remain constructive, stemming from demand by emerging economies such as China and Brazil," Ong told AFP.
"OPEC may not increase output, or will not increase it much, which may lead to a gradual tightening of the Oil markets and higher prices in later part of the year," she added.
Meanwhile, investors are looking to the June 8 ministerial meeting by the Organisation of the Petroleum Exporting Countries in Vienna where the cartel is expected to give an update on the industry.
Copyright AFP (Agence France-Presse), 2011
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