'Oil recovers in Asian trade but gains limited'

Oil recovered in Asian trade today but continued pessimism on the weak global economy will keep a lid on further price gains, analysts said.  

New York's main contract, light sweet crude for August delivery, advanced 38 cents to $60.07 a barrel.  

Brent North Sea crude for August delivery gained 39 cents to $61.08.  

Both contracts closed weaker yesterday on concerns over the pace of recovery in the global economy, especially in the United States.

Analysts added any gains were likely to be capped due to caution over US energy demand and would be short-term in nature. The United States is the world's biggest economy and its largest energy consumer.  

"Oil markets remain concerned that economic recovery in the main developed economies is likely to be a slow grind," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.  

Weak energy demand in the United States has been a dominant theme since recent data suggested its economy remained fragile despite a massive stimulus spending plan of $787 billion by President Barack Obama's administration.  

"The global energy market is lost in the fog as the economic outlook seems to be getting a bit murkier," said Phil Flynn of Alaron Research.