US Light oil prices trading near $75, investors eye US dollar

US Light oil prices rose to near $75 a barrel in positive trading on Thursday in Asia as investors looked for guidance from the currency markets including the US dollar amid a muddled crude oil demand outlook.

Light crude oil futures for March delivery is up 29 cents at $74.81 a barrel at midday Singapore time in electronic trading on the NYMEX and rose 77 cents to settle at $74.52 on Wednesday.

Oil climbed yesterday as the department raised its demand projection to 85.3 million barrels a day from 85.18 million, according to its monthly Short Term Energy Outlook. OPEC also increased its oil forecast for the amount of crude its members may be called on to supply in 2010, by 150,000 barrels a day. “All the adjusted demand forecasts are based on an improving economic outlook,” said Purvin & Gertz’s Shum.

The Euro rose against the US dollar on Thursday, ahead of a summit where all 27 EU members were to discuss ways of providing financial assistance to debt laden Greece. Shortly before the start of the European trading session, EUR/USD gained 0.39% to hit 1.3791. The pair was likely to find the resistance at 1.3903, last Thursday’s high, and support around 1.3585, Friday’s low.

Tags:  Asia, currency, dollar, light, markets, oil prices, trading, US