Oil prices rise to levels near US$102

26-May-11

Oil prices inched higher to near US$102 a barrel in Asia amid a weaker dollar and mixed signs about U.S. crude demand heading into the summer driving season, as per Associate Press. Benchmark oil for July delivery rose to US$101.6 in Singapore on the Nyme, while in London, Brent crude for July delivery inched up to US$115 on the ICE Futures exchange. As per the Energy Department, US oil and gasoline supplies grew last week while distillate inventories fell. 4 week average oil demand in the US dropped 5.3%, while gasoline demand fell 2.1%. The biggest concern is poor economic data, as reflected in this week's DOE report that indicates that fundamentals in the world's largest oil-consuming market are not great.