Oil strengthens above $74 in Asian trade
Oil firmed up in Asian trade on Thursday as a weaker US dollar spurred buying in the commodity and investors waited for a closely watched report on US energy inventories.
By Agencies |
SINGAPORE: Oil firmed up in Asian trade on Thursday as a weaker US dollar spurred buying in the commodity and investors waited for a closely watched report on US energy inventories.
New York's main futures contract, light sweet crude for delivery in March, rose 35 cents to 74.87 dollars a barrel.
Brent North Sea crude for March delivery was up 26 cents to 72.80 dollars a barrel.
"The dollar is weaker so that's pushing oil prices up," said Clarence Chu, an oil trader with Hudson Capital Energy in Singapore.
As oil is traded in US dollars, a weaker greenback makes the commodity cheaper to holders of other units, stimulating demand.
The euro regained some footing in Asian trade Thursday as European Union leaders prepared for a summit aimed at preventing the crisis in debt-laden Greece from spreading.
The euro climbed to 1.3786 dollars in Singapore morning trade from 1.3732 dollars in New York late Wednesday. The dollar eased to 89.90 yen from 89.92.
Trading was quiet despite the market's gains with many investors waiting for the US Department of Energy's energy inventories report which will be released Friday for a clearer picture on demand, traders said.
The DoE delayed the report, usually published on Wednesday, because of the inclement weather that forced the closure of nearly all offices of the federal government in Washington as well as airports and schools.
Other analysts said the market was also monitoring the results of the EU summit in Brussels in which the leaders are expected to discuss the debt crisis in Greece and how to prevent it from spreading to the rest of the eurozone.
New York's main futures contract, light sweet crude for delivery in March, rose 35 cents to 74.87 dollars a barrel.
Brent North Sea crude for March delivery was up 26 cents to 72.80 dollars a barrel.
"The dollar is weaker so that's pushing oil prices up," said Clarence Chu, an oil trader with Hudson Capital Energy in Singapore.
As oil is traded in US dollars, a weaker greenback makes the commodity cheaper to holders of other units, stimulating demand.
The euro regained some footing in Asian trade Thursday as European Union leaders prepared for a summit aimed at preventing the crisis in debt-laden Greece from spreading.
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The euro climbed to 1.3786 dollars in Singapore morning trade from 1.3732 dollars in New York late Wednesday. The dollar eased to 89.90 yen from 89.92.
Trading was quiet despite the market's gains with many investors waiting for the US Department of Energy's energy inventories report which will be released Friday for a clearer picture on demand, traders said.
The DoE delayed the report, usually published on Wednesday, because of the inclement weather that forced the closure of nearly all offices of the federal government in Washington as well as airports and schools.
Other analysts said the market was also monitoring the results of the EU summit in Brussels in which the leaders are expected to discuss the debt crisis in Greece and how to prevent it from spreading to the rest of the eurozone.
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