Oil prices up in Asian trade as regional demand picks up

I / Singapore December 15, 2009, 9:44 IST

Oil prices rose in Asian trade today as traders were heartened by renewed demand for energy in the region, dealers said.

New York's main contract, light sweet crude for delivery in January, gained 26 cents to $69.77 a barrel.

Brent North Sea crude for delivery in January was up 10 cents to $71.99.

Reinvigorated energy demand in Asia was fuelling a rise in crude markets, dealers said.

"Asia is now growing again and fundamental demand for oil is putting pressure on prices," said DBS Group Research in a report.

The group highlighted the fact that China's import demand had tracked Brent crude prices "almost one-for-one for the past eight years", and the fact that prices on the index were more than double the level of a year ago, as a sign that Asia is leading the charge in reviving global energy demand.

Prices were also rising as more investors moved to buy up crude, the group added.

"Investment demand for crude is on the rise too, adding another dimension to the upward push in prices," it stated.

Meanwhile, traders were turning their thoughts to the upcoming meeting of OPEC oil producers on December 22 in Luanda.