Oil higher in Asian trade

Oil rose in Asian trade today with investor mood upbeat that the global economy was over the worst of the slump, analysts said.

In particular, a stronger-than-expected set of US corporate earnings has fuelled hopes that the world's largest economy was on the mend from a recession that started late last year, they said.

New York's main contract, light sweet crude for September delivery, put on 39 cents to $68.44 a barrel.

Brent North Sea crude for September delivery was 38 cents firmer at $70.70.

"People concluded that Asia seems to have turned the corner -- now the US is also thought to be recovering," said Tony Nunan, a Tokyo-based manager with Mitsubishi Corp's international petroleum business unit.

In Asia, a strong 7.9 per cent surge in second quarter growth from China's economy has bolstered hopes that the region is also starting to shake off the US-led global slump.

After the United States, China is the number two energy user in the world.

Crude prices have surged about $10 in New York over the past two weeks, energised by strong US corporate earnings and economic data suggesting the US and other key economies are starting to recover.