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Oil prices higher in Asian trade

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AFP PTI Singapore
Last Updated : Jan 20 2013 | 12:00 AM IST

Oil prices were higher in Asian trade today, extending gains on the back of a rally in global stocks and a weaker dollar, analysts said.

New York's main contract, light sweet crude for September, advanced 50 cents to $67.44 after vaulting $3.57 in US trade overnight.

Brent North Sea crude for September delivery climbed 33 cents to $70.44 following a $3.58 rise.

"Global stock markets are hitting short-term highs and therefore crude prices are following," said Ken Hasegawa, energy desk manager at Newedge Japan brokerage in Tokyo.

A weaker $ also helped boost oil prices, analysts said, as the US unit retreated after a rally in global shares and metal prices encouraged investors to snap up riskier currencies closely tied to volatile commodities markets.

Since oil is traded in the $, the commodity is cheaper to holders of stronger currencies, which stimulates demand and leads to higher prices.

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Hasegawa said a cut by the Organisation of Petroleum Exporting Countries (OPEC) on the export of heavy crude has made Brent cheaper and more attractive to countries like China which is why it have gone ahead of New York prices.

On the other hand, stockpiles at Cushing, a US hub where oil traded in New York is delivered, have increased due to deliveries of Canadian crude over the past three to four weeks.

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First Published: Jul 31 2009 | 9:56 AM IST

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