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Oil higher on hopes of improved US demand

Published: Thursday, Sep 9, 2010, 9:54 IST
Place: Singapore | Agency: PTI

Oil was higher in Asian trade today on expectations that government data will show a rise in US demand, analysts said.

New York's main contract, light sweet crude for October delivery, rose 47 cents to $75.14 a barrel.

Brent North Sea crude for October delivery put on 28 cents to $78.45 a barrel.

Despite fears that the US economic recovery is losing steam the American Petroleum Institute (API) said Wednesday the country's crude stocks fell 7.3 million barrels last week.

"I think that sentiments in the market are a bit positive now," said Ong Yi Ling, an analyst with Phillip Futures in Singapore.

"The API report showed an unexpected drawdown in crude oil inventories," she told AFP.

A decline in energy stocks is seen as an indicator that demand has risen.

Investors will be watching for the department of energy's weekly report due out later today for further clues on US oil demand.

The US economy is a major energy user and the weekly report is widely monitored by the market.

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