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| Oil higher in Asia trade |
| AFP/PTI / Singapore Jul 15, 2009, 10:21 IST |
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Oil was higher in Asian trade today but any further sharp gains were likely to be capped by worries over weak US energy demand, analysts said.
New York's main contract, light sweet crude for August delivery, advanced 60 cents to $60.12 a barrel after closing yesterday 17 cents lower at $59.52, its lowest since May 18.
Brent North Sea crude for August delivery gained 74 cents to $61.60.
Keeping a lid on prices are expectations of another build-up in US oil stockpiles when the Department of Energy (DoE) releases its weekly inventory report later today, analysts added.
A Dow Jones Newswires poll of analysts expects the DoE report to show a 900,000-barrel rise in gasoline reserves in the week to July 10, indicating anaemic demand in the world's biggest economy and energy user.
"The world is facing a glut of oil," Morgan Stanley's commodity analysts said in a report.
Last week's DoE report also showed an increase in gasoline reserves, which are widely monitored at this time of year when the US summer holiday driving season kicks into gear.
Also likely to weigh on prices are comments by US President Barack Obama that he expects the unemployment rate, currently at 9.5 percent, to rise further.
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