Global oil prices reversed trends and edged above $74 a barrel in Asian trade Tuesday mainly on dollar weakness.
Global oil prices reversed trends and edged above $74 a barrel in Asian trade Tuesday mainly on dollar weakness. Light sweet crude for January delivery was seen trading at $ 74.41a barrel at 12.00 noon Singapore time while Brent crude was at 76.68 a barrel at the same trime. The black gold snapped four days of losses as the dollar fell against the euro, increasing the appeal of commodities as an alternative investment.
On Monday, January contract has traded between $75 and $81 for almost eight weeks. January delivery, dropped $1.54 to $73.93 a barrel.
The New York futures contract has fallen for four consecutive sessions, losing $4.44 a barrel or 5.7 percent.
In London, Brent North Sea crude for January delivery shed $1.09 to settle at $76.43 a barrel.
Oil prices sank as traders worried about oversupply in the United States and weak demand among developed countries as the global economy claws out of recession.
However a weak dollar helped oil prices to reverse trends Tuesday. The dollar traded at $1.4841 per euro at noon time in Singapore, from $1.4827 on Monday.
The dollar, which had strengthened sharply after a better-than-expected official US jobs report Friday, lost steam after Bernanke suggested the Fed would keep its key rate between zero and 0.25 percent, where it has been for a year, to support an anaemic recovery.
US Energy Department is scheduled to release its weekly report on Wednesday.