Oil prices were mixed in Asian trade today as Opec forecasts of lower global energy demand dampened sentiment, analysts said.
New York's main contract, light sweet crude for delivery in October, was up 80 cents to $88.99 per barrel in morning trade, boosted mainly by a weaker US dollar which makes dollar-priced oil cheaper, perking up demand.
Brent North Sea crude for October delivery fell 52 cents to $112.25, with sentiment subdued after the Organisation of Petroleum Exporting Countries (Opec) projected lower global oil demand this year and in 2012.
"We see that crude oil is gaining alongside a weaker dollar," said Ker Chung Yang, a commodity analyst at Phillip Futures in Singapore.
He said however that Opec's latest monthly report forecasting lower energy demand was limiting gains.
"This is bearish news for the oil markets," Ker said.
Opec, citing the poor economic climate, said oil demand for this year was forecast to be 87.99 million barrels per day (bpd), down from a previous forecast of 88.14 million bpd.
For 2012, demand was expected to average 89.26 million bpd, down from the August estimate of 89.44 million bpd.
The 12-member oil cartel cited weak demand in the United States and the effects of financial strains, particularly among the developed nations, which were dragging down demand in China and India.
Oil traders were also monitoring data from the American Petroleum Institute due later today. Analysts are predicting inventories will decline by three million barrels due to supply disruption caused by tropical storm Lee.
