Oil rises to above $89 as US dol­lar weak­ens

The Pak Banker - - International3 -

SINGAPORE: Oil prices rose above $89 a bar­rel Thurs­day in Asia as a weaker U.S. dol­lar made crude cheaper for in­vestors with other cur­ren­cies.

Bench­mark oil for Jan­uary de­liv­ery was up 94 cents to $89.22 a bar­rel at late af­ter­noon Singapore time in elec­tronic trad­ing on the New York Mer­can­tile Ex­change. The con­tract lost 41 cents to set­tle at $88.28 on Wed­nes­day.

Oil has hov­ered in the up­per-$80s this week - touch­ing a two-year high of $90.76 on Tues­day - as traders mull how much global crude de­mand may grow in 2011. In the ab­sence of any strong cat­a­lyst from oil mar­ket or eco­nomic data, crude prices of­ten fol­low cur­rency and stock mar­kets.

The euro rose to $1.3310 on Thurs­day from $1.3261 late Wed­nes­day while the dol­lar dropped to 83.80 yen from 84.00 yen. Some an­a­lysts ex­pect surg­ing crude con­sump­tion in Asia and other emerg­ing economies to con­tinue to boost global de­mand next year. Global oil con­sump­tion rose to a record 86.7 mil­lion bar­rels a day in the third quar­ter and will likely jump to 88.1 mil­lion in 2011, ac­cord­ing to en­ergy con­sul­tant Wood Macken­zie. -Ap

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