Oil futures were driven up in Asian trade on Wednesday as traders sought to cash in on crude following an earlier fall in prices, analysts said.
Oil futures were driven up in Asian trade on Wednesday as traders sought to cash in on crude following an earlier fall in prices, analysts said.
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New York's main futures contract, light sweet crude for delivery in January, rose 45 cents to USD 73.07 a barrel. Brent North Sea crude for January delivery gained 25 cents to USD 75.44.
Traders were buying on weakness of crude prices as oil markets were hit by a stronger greenback in overnight trade, said Ben Westmore, minerals and energy economist of the National Australia Bank in Melbourne. The dollar was trading at 88.46 yen against 88.38 in morning Asian trade.
The Commonwealth Bank of Australia also said that energy markets were affected by concerns about subdued US oil demand.
The US Energy Information Administration (EIA) yesterday lowered its 2010 outlook for global oil demand for the first time in three months, with revised expectations of a 1.1 million bpd rise slightly lower than projections made last month, said the Commonwealth Bank of Australia.
The EIA also lowered predictions of US oil demand gain to 270,000 bpd, which was slightly less than last month's prediction.
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