Oil prices up in Asian trade Monday, reports hike in oil demand

Oil prices rose in Asian trade Monday, boosted by reports forecasting a hike in crude oil demand, seen as an indicator of economic recovery, analysts said. Oil prices have risen for a third day on speculation fuel demand will increase amid signs the global economy is emerging from recession.

Oil prices climbed after Singapore, Southeast Asia’s fourth largest economy, raised its 2009 economic forecast, strengthening a regional recovery. US equities reached their highest in a year Oct. 9, fanning hope world energy consumption will accelerate. “It is optimism for a strong equities performance this week and more signs of economic life that is supporting prices,” said Victor Shum, a senior principal at consultants Purvin & Gertz Inc. in Singapore. “The short-term financial market drivers may drive oil stronger this week.”

Crude oil futures for November delivery climbed as much as 79 cents, or 1.1 per cent, to $US72.56 a barrel in electronic trading on the NYMEX. It was at $US72.28 at 12:30 p.m. Singapore time. Futures have gained 62 per cent this year. Japan and the US are closed for public holidays.

Crude prices were lifted by an IEA report on Friday saying demand was expected to improve at the end of this year and in 2010 as the global economy recovers from a slump, analysts said.

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