Oil prices turn higher in Asian trade

09-Feb-06

Oil prices turned higher in Asian trading hours. At 11.24 am (0324 GMT), New York's main contract, light sweet crude for delivery in March, was up 0.18 US$ at 62.73 US$ a barrel from its overnight close of 62.55 US$ in the US. Iran's controversial nuclear energy program related uncertainties are still considered to be a source of concern. The fall in U.S. inventory levels of crude oil and that of distillates, used for heating and diesel fuel, contrary to expected rise, is also sighted as a reason for renewed expectations of price increase. Strong fund based buying and rising geopolitical tensions, mainly in Iran and Nigeria, led to oil prices increase of almost 9 pct last month.