Oil prices rose towards $71 a barrel in Asian trade today but sentiment remained weak as investors eyed the debt crisis in Europe, analysts said.
New York's main contract, light sweet crude for delivery in June, gained $1.09 to 70.96 a barrel. The contract will expire later today.
Brent North Sea crude for July delivery was up 37 cents to $74.06.
"The June contract has been moved around because of the pre-expiry positioning and that was affected by a number of factors," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
"It's certainly premature to say that the (price) increases represent a turning point for oil at this point. The market remains very volatile and the outlook for oil prices in the very near term is still pretty uncertain," he told AFP.
Prices moved higher in US trade Wednesday after briefly dropping to their lowest level in more than seven months when it hit $67.90 as the euro fell against the dollar on worries over the eurozone debt crisis.
A stronger greenback makes dollar-priced crude more expensive for buyers using weaker currencies, denting demand, which leads to lower oil prices.
The market was later boosted by a positive growth forecast from the Federal Reserve Wednesday and a report which showed a drop in some US energy stockpiles, signalling greater demand in the largest energy consuming nation.
However, Moore said for the near term, investors would continue to focus on the "developments in Europe and what they mean for the international economic outlook", rather than the market's demand and supply balance.
