Global oil prices advanced towards $89 a barrel mark Tuesday as the US dollar seems to lack any clear direction while cold conditions in US and Europe once again boosted optimism heating fuel demand will increase.
Light sweet crude for January contract was seen trading at $88.76 a barrel at 1.0.0 p m London time while Brent crude for January settlement was at $91.35 a barrel, on the ICE Futures exchange here.
Analysts said the black gold recovered from a sluggish start as China kept its benchmark interest rate unchanged, increasing confidence among investors that the nation will maintain demand for commodities.
Oil also gained on a cold spell that hit US Midwest, Southeast and mid-Atlantic and likely to go through till December last, they added.
Florida declared a state of emergency amid severe cold that could damage crops, and a snowstorm battered the Midwest. U.S. gasoline inventories probably increased for a fourth week.
U.S. crude stockpiles probably dropped to the lowest since July 9, according to the median of 11 analysts estimates before tomorrow s energy report.
The Energy Department is scheduled to release its weekly report on Wednesday. The industry- funded American Petroleum Institute will publish its own estimates later Tuesday.
Meanwhile, the dollar traded near a one-week low against the yen amid speculation that the Federal Reserve will signal it s open to increasing debt purchases beyond the $600 billion already announced. The Fed s policy makers are scheduled to meet Tuesday.
Crude prices may rise above $100 a barrel by the second half of next year as U.S. demand recovers and global inventories decline, Goldman Sachs Group Inc. said in its 2011 commodities outlook.
Some analysts believe that WTI oil prices will encounter stronger resistance after it approaches $90 per barrel.
Light sweet crude for January contract was seen trading at $88.76 a barrel at 1.0.0 p m London time while Brent crude for January settlement was at $91.35 a barrel, on the ICE Futures exchange here.
Analysts said the black gold recovered from a sluggish start as China kept its benchmark interest rate unchanged, increasing confidence among investors that the nation will maintain demand for commodities.
Oil also gained on a cold spell that hit US Midwest, Southeast and mid-Atlantic and likely to go through till December last, they added.
Florida declared a state of emergency amid severe cold that could damage crops, and a snowstorm battered the Midwest. U.S. gasoline inventories probably increased for a fourth week.
U.S. crude stockpiles probably dropped to the lowest since July 9, according to the median of 11 analysts estimates before tomorrow s energy report.
The Energy Department is scheduled to release its weekly report on Wednesday. The industry- funded American Petroleum Institute will publish its own estimates later Tuesday.
Meanwhile, the dollar traded near a one-week low against the yen amid speculation that the Federal Reserve will signal it s open to increasing debt purchases beyond the $600 billion already announced. The Fed s policy makers are scheduled to meet Tuesday.
Crude prices may rise above $100 a barrel by the second half of next year as U.S. demand recovers and global inventories decline, Goldman Sachs Group Inc. said in its 2011 commodities outlook.
Some analysts believe that WTI oil prices will encounter stronger resistance after it approaches $90 per barrel.
