Oil prices mixed in Asian trade

Oil prices were mixed in early Asian trade today but analysts were optimistic that markets would rise on strong Chinese industrial output and an improved US economic outlook.

New York's main contract, light sweet crude for October delivery, slipped three cents to $77.16 a barrel.

Brent North Sea crude for delivery in October added four cents to $79.07.

Crude markets were in a lull after touching one-month highs yesterday, but investment analyst at Phillip Capital in Singapore Ong Yi Ling said she expected prices to rise.

"The economic outlook is being viewed now in a more positive light," she told AFP, saying strong Chinese industrial data as well as reassurances that the US would not slip into a double-dip recession were supporting prices.

Official figures released Saturday showed China's industrial output gathering pace, rising 13.9 per cent in August.

Markets were also heartened by comments from US investment guru Warren Buffett and Goldman Sachs head US economist Jan Hatzius yesterday that the US economy would not not slump back into recession.

"We will not have a double-dip recession at all. I see our businesses coming back almost across the board," media reports quoted Buffett as saying.