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Oil prices rise in Asian trade on weakening US dollar

Oil prices rose in Asian trade, riding the weakening US dollar and indications from OPEC that the cartel was satisfied with current crude prices, analysts said.

business Updated: Dec 07, 2009 08:05 IST

Oil prices rose in Asian trade on Monday, riding the weakening US dollar and indications from OPEC that the cartel was satisfied with current crude prices, analysts said.

New York's main contract, light sweet crude for January delivery gained 20 cents to 75.67 dollars a barrel.

Brent North Sea crude for January delivery advanced 30 cents to 77.82 dollars a barrel.

Oil markets were buoyed by a weakening greenback, analysts said.

"The US dollar has weakened against the euro... so the financial factors therefore support oil rising," said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.

The euro was trading at 1.4880 dollars at 0155 GMT from 1.4852 late Friday in New York.

Indications from the Organisation of Petroleum Exporting Countries (OPEC) that they were not going to cut production quotas in their December 22 conference was also "a factor" pushing prices up, Shum added.

"The chatter out of OPEC is that they are happy with the current pricing, there's going to be no increase in production," he said.

Saudi Arabia stated over the weekend that oil prices were "perfect" and the global market was stable, as Arab heavyweights in the OPEC cartel appeared united in their support for maintaining production quotas.

"Everything is so good now, we don't have to think very hard," Saudi Oil Minister Ali al-Naimi said in Cairo, reflecting an agreement among OPEC members to keep production quotas unchanged at the December 22 conference.