Bargain hunting boosts oil prices in Asia

Crude oil prices rose in Asian trade today, snapping a six-session losing streak in New York as traders looked for bargains after recent losses, analysts said.

New York's main contract, light sweet crude for March delivery, was up 24 cents to $86.43 per barrel.

The contract lost roughly six percent of its value after falling for six straight sessions since last week, and plunged to $86.12 in intraday trade yesterday, its lowest level since early December.

Brent North Sea crude for delivery in March gained 23 cents to $95.48.

"I think oil traders are bargain hunting after prices declined significantly from $93 last week," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.

Prices had been battered in Tuesday trade as disappointing economic releases in the US and Britain hamstrung crude markets.

Official data showed the British economy shrank unexpectedly, by 0.5%, in the fourth quarter of 2010.

It was the first contraction since the third quarter of 2009 and surprised most analysts, who had forecast 0.4% gross domestic product growth.

In the US, home prices dropped in November for the fifth straight month, according to the Standard & Poor's/Case-Shiller index released yesterday in the latest reminder of the grim housing crisis in the world's largest oil consumer.