Oil lingers above US$91
NEW YORK, United States — Crude oil futures hovered above US$91 a barrel yesterday, driven mainly by stronger demand in emerging markets such as China.
Benchmark crude for February delivery was little changed on the New York Mercantile Exchange, down 16 cents to settle at US$91.38 a barrel.
Oil prices got little support from the monthly report from the Organization of Petroleum Exporting Countries which raised slightly the forecast for demand for its crude.
The demand for OPEC crude is expected to average 29.4 million barrels a day in 2011, an increase of 0.4 million barrels a day over 2010 and an increase of 0.2 million barrels a day over the previous assessment, the Vienna-based group said.
The International Energy Agency also raised its oil demand forecast for 2011, based on recharged global economic growth and a cold winter in the Northern Hemisphere which is leading to more consumption of heating oil.
The Paris-based agency predicts oil demand this year will rise to 89.1 million barrels a day, up from 87.7 million barrels a day in 2010. Last month the IEA forecast 2011 oil demand would hit 88.8 million barrels a day.
Earlier in the trading day, a weaker dollar helped sustain prices by making crude cheaper for investors holding other currencies.
The dollar fell to a one-month low against the euro Tuesday as investors believe European officials will soon beef up the region’s plans for countering its debt crisis.
In other Nymex trading in February contracts, heating oil added 0.07 cent to settle at US$2.6459 a gallon, and gasoline lost 1.54 cents to settle at US$2.4792 a gallon. Natural gas March futures fell 5.5 cents to settle at US$4.425 per 1,000 cubic feet.
In London, Brent crude rose 37 cents to settle at US$97.80 a barrel on the ICE Futures exchange.