Oil prices rose to near $72 a barrel today in Asia as investors mulled the impact slower European economic growth could have on global crude demand.
Benchmark crude for July delivery was up 38 cents to $71.89 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $2.76 to settle at $71.51 yesterday.
Oil has dropped from $87.15 a barrel earlier this month amid investor concern that Europe's debt crisis will undermine a global economic recovery.
Some analysts expect oil prices to move higher once the Europe crisis stabilizes and investors focus on surging crude demand in emerging countries.
Greece, Ireland, Spain and Portugal -- four of the European countries with the biggest debt and fiscal problems -- account for just 2.6 per cent of the global economy and crude demand, Barclays Capital said in a report.
"Persistent fears about the region's sovereign debt situation keep sentiment fragile and oil prices under pressure," Barclays said. "The risk to oil prices is clearly skewed to the upside, once this initial fear about the eurozone fades and fundamentals return to being the focus of the market."
In other Nymex trading in June contracts, heating oil fell 0.60 cent to $1.9147 a gallon, and gasoline dropped 1.04 cents to $1.9600 a gallon. Natural gas was steady at $4.174 per 1,000 cubic feet.
In London, the Brent crude July contact was up 23 cents to $71.97 on the ICE futures exchange.