Oil up in volatile trade, stays above $82

Oil prices were higher in volatile Asian trade today as the market pared recent gains ahead of a weekly report on US energy stockpiles, analysts said.

New York's main contract, light sweet crude for delivery in May, was up seven cents to $82.24 a barrel.

Brent North Sea crude for May rose 10 cents to $81.27 per barrel.

"The market has been zig-zagging between just under $80 and up to 83 so I think we're caught in a range at the moment," said Tony Nunan, an energy risk manager with Mitsubishi Corp in Tokyo.

"We've been in sideways trading for a while and I think the market focus will be on the inventory data which is expected to be bearish partly because we're entering the second quarter of the demand period."

The US Department of Energy will release its weekly US oil inventories report tomorrow indicating the extent of demand in the world's largest energy consumer.

Oil prices rose sharply yesterday as the New York contract climbed $2.17 on the back of a weak US dollar and rising stock markets as well as concerns after deadly suicide attacks on packed metro trains in Moscow.

The market is also awaiting upcoming data this week that many analysts said would show an improving jobs situation in the United States, which is reeling from a near double digit unemployment crisis.