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SINGAPORE: Oil was higher in Asian trade Friday as the US currency weakened against the euro, boosting investor appetite for dollar-priced commodities including crude, analysts said.
New York”s main contract, light sweet crude for July delivery, gained 29 cents to $100.52 a barrel and Brent North Sea crude for July delivery was 20 cents higher at $115.25.
“It”s up a little bit and is consistent with the movement of the dollar versus the euro,” said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
In early morning trade, the euro was changing hands at $1.4152 from $1.4141 in late New York trade Thursday.
A weaker US unit makes it cheaper for holders of other currencies to invest in crude oil futures and oil dollar-priced commodities.
Shum said crude prices were expected to stay above $100 ahead of the Memorial Day extended weekend, which also marks the start of the US summer driving season.
Gasoline demand in the world”s biggest oil consumer is expected to pick up as many Americans take to the road for their holidays.
“The US Memorial Day also marks the beginning of the summer driving season,” Shum told.
“So that may help support pricing even though the recent economic data out of the US has been on the weak side,” he said. (AFP)
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