Thursday June 4, 09:50 AM
Oil prices higher in Asian trade
SINGAPORE (AFP) - Oil prices rose in Asian trade Thursday after falling overnight from seven-month highs in reaction to a surprise jump in US crude reserves, analysts said.
New York's main futures contract, light sweet crude for delivery in July, rose 75 cents to 66.87 dollars a barrel.
Brent North Sea crude for July delivery gained 68 cents to 66.56 dollars.
Analysts said crude prices were likely to continue to rise as investors were generally optimistic about the likelihood of a global economic recovery.
"I think the general trend upwards is generally intact," said Jonathan Kornafel, Asian director of Hudson Capital Energy in Singapore.
The US Department of Energy said Wednesday American crude oil inventories rose 2.9 million barrels in the week ending May 29 to 366 million barrels. Most analysts had expected a 1.7-million-barrel drop.
The weekly US government report is closely monitored by the market for indications of demand in the world's biggest energy user.
This week, oil has punched seven-month peaks on the back of a weakening US currency, which makes dollar-priced oil cheaper for holders of stronger currencies and in turn stimulates demand and pushing up prices.
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