Oil prices rose in Asian trade on Friday, lifted by signs of stronger demand as the world economy recovers from recession, analysts said.
Oil prices rose in Asian trade on Friday, lifted by signs of stronger demand as the world economy recovers from recession, analysts said.
New York's main contract, light sweet crude for April delivery, added nine cents to USD 82.20 a barrel. London's Brent North Sea crude for April was up nine cents to USD 80.37.
"There is a general consensus that the global economy is growing," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore. "What has also helped the bullish sentiment is the US oil inventory report," he added.
"Market participants are bullish at this point based on economic recovery optimism and are thinking ahead about the summer driving season raising gasoline demand in the US." The US Department of Energy's (DoE) weekly oil inventory report Wednesday showed a surprise drop in gasoline stockpiles, a key factor behind the large supply backlog, indicating strengthening demand.
Gasoline stockpiles tumbled 2.9 million barrels in the week to March 5, surprising the market as most analysts had expected an increase of about 100,000 barrels.
The DoE also said distillates were down 2.2 million barrels, far more than predictions of a 700,000-barrel drop. US crude oil inventories meanwhile climbed 1.4 million barrels, which undershot analysts' consensus forecast for a 1.7-million-barrel gain.
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