US Light oil prices climb up in Asia trading on Friday

US Light oil prices are trading slightly higher in Asia on Friday, getting some support from a weaker US dollar and strengthening demand in the US, the world’s biggest energy consumer, analysts said.

New York’s main futures contract, Light sweet crude oil futures for delivery in January, climbed 34 cents to $72.99 a barrel in afternoon trading. The contract will expire on Monday and the February contract was trading at $74.27. Brent North Sea crude for delivery in February rose three cents to $73.40 on the ICE Futures Exchange.

“The January contract is expiring next Monday so there’s not much liquidity and it’s likely to be more volatile,” said Clarence Chu, an oil trader at Hudson Capital Energy in Singapore. He said most traders were already eyeing the February contract.

Oil prices fell sharply overnight as investors took profits following the previous day’s strong gains on indications of stronger demand in the United States, the world’s biggest economy and the largest energy consumer.

A weaker US dollar helped boost prices Friday. As oil is traded in US dollars, a weaker greenback would make the commodity cheaper for holders of other currencies, boosting demand and leading to higher prices. Analysts said stronger US energy demand, boosted by the need for heating fuel during the northern hemisphere winter, is likely to continue supporting oil prices.

Tags:  Asia, light oil prices, trading, US