Oil higher in Asian trade on US economic recovery hopes

SINGAPORE: Oil prices rebounded in Asian trade Monday on optimism that US data this week will show the world's biggest economy is extending its steady recovery, analysts said.

New York's main contract, light sweet crude for delivery in May, climbed 60 cents to 80.60 dollars a barrel in the afternoon.

Brent North Sea crude for May delivery was up 66 cents to 79.95 dollars per barrel.

The Institute of Supply Management will release its index on US manufacturing growth Thursday and the Labor Department's report on non-farm payroll employment is to follow Friday.

"I think people are looking towards the data due out later this week and thinking (it) will confirm the view of economic recovery," said David Moore, an analyst with the Commonwealth Bank of Australia in Sydney.

Oil prices declined Friday after weaker-than-expected US economic growth data overshadowed the impact of an EU rescue plan for debt-ridden Greece, traders said.

Friday's data showed the US economy -- the world's top oil consumer -- grew at a slower pace than previously thought in the fourth quarter, as business and consumer spending slackened amid a fragile recovery from recession.

The US economy grew 5.6 per cent in the October-December period, the Commerce Department said, revising downward an earlier estimate of 5.9 per cent.