World oil prices climbed past the $85 a barrel mark in Asian trade Monday on signs of increase in energy demand.
Light sweet crude for December delivery was seen trading at $ 85.25 a barrel at 12.00 noon Singapore time while Brent crude was at $86.54 a barrel in London.
Analysts said the black gold recovered from last week s decline mainly after Japanese economy grew faster than expected, stoking speculation Asia s fuel demand will increase.
They added that the markets will also influenced by possible intervention by China to ease its inflation pressures. On Friday after China said inflation quickened to 4.4 percent in October.
Traders are concerned policymakers may take additional measures to slow Chinese economic growth, which would undermine demand for crude.
However they said oil is likely to remain volatile during the day on prospect of increase in Chinese interest rate and uncertainty about sovereign debt in Europe.
On Friday, the IEA said oil demand growth will slow in 2011, while raising its 2010 forecast, providing no comfort to traders looking for a more sustained global demand recovery.
In other Nymex trading in December contracts, heating oil rose 0.71 cent to $2.370 a gallon and gasoline was steady at $2.21 a gallon. Natural gas held at $3.803 per 1,000 cubic feet.
Light sweet crude for December delivery was seen trading at $ 85.25 a barrel at 12.00 noon Singapore time while Brent crude was at $86.54 a barrel in London.
Analysts said the black gold recovered from last week s decline mainly after Japanese economy grew faster than expected, stoking speculation Asia s fuel demand will increase.
They added that the markets will also influenced by possible intervention by China to ease its inflation pressures. On Friday after China said inflation quickened to 4.4 percent in October.
Traders are concerned policymakers may take additional measures to slow Chinese economic growth, which would undermine demand for crude.
However they said oil is likely to remain volatile during the day on prospect of increase in Chinese interest rate and uncertainty about sovereign debt in Europe.
On Friday, the IEA said oil demand growth will slow in 2011, while raising its 2010 forecast, providing no comfort to traders looking for a more sustained global demand recovery.
In other Nymex trading in December contracts, heating oil rose 0.71 cent to $2.370 a gallon and gasoline was steady at $2.21 a gallon. Natural gas held at $3.803 per 1,000 cubic feet.
