Oil prices rose to near $72 a barrel today in Asia after Federal Reserve Chairman Ben Bernanke said he's hopeful the world's No 1 economy won't fall back into a "double dip" recession.
Benchmark crude for July delivery was up 31 cents to $71.75 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 7 cents to settle at $71.44 yesterday.
All major Asian stock markets rose modestly today after Bernanke said he expected the US economic recovery to continue.
Bernanke spoke late yesterday after the Dow Jones industrial average dropped 1.2 per cent. A rising euro, off recent 4-year lows, also helped support oil prices.
The euro gained to $1.1963 today from $1.1916 yesterday, making crude cheaper for investors holding the European currency.
Storms could disrupt oil operations in the Gulf of Mexico and boost prices as this year's hurricane season starts this month.
"As soon as the dollar drops, equity markets recover and the hurricanes hit the Gulf of Mexico, we could see a perfect storm for higher crude oil prices," energy consultancy the Schork Group said in a report.
