Oil up in Asia as dollar weakens
SINGAPORE: oil rose in Asian trade Friday as a weak US currency spurred investor interest in dollar-priced commodities including crude, analysts said.
New York's main contract, light sweet crude for July delivery, rose 20 cents to $100.60 a barrel and Brent North Sea crude for July delivery gained 24 cents at $115.78.
"There were slight gains this morning due to a weaker dollar," said Ong Yi Ling, a Singapore-based analyst from Phillip Futures.
In morning trade, the euro was changing hands at 1.4486 dollars compared with 1.4484 late Thursday in New York.
A weak dollar makes dollar-priced commodities, such as crude oil, cheaper for other currency holders, prompting more buying from investors.
But worries about the US economy are expected to keep a lid on any sharp price surge.
The US Department of Energy reported Thursday that the country's crude reserves soared by 2.9 million barrels in the week ending May 27, instead of declining as expected by most analysts.
A rise in crude stocks is seen as a sign of demand waning in the world's number one oil consumer.
Copyright AFP (Agence France-Presse), 2011
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