SINGAPORE (AP) — Oil prices rose above $68 a barrel Tuesday in Asia as traders mulled whether a weak global economy justified a doubling of crude since March.
Benchmark crude for July delivery was up 40 cents at $68.49 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Monday, it fell 35 cents to settle at $68.09.
Oil prices have joined a surge in equity markets on investor optimism that the worst of a global recession is over. Crude touched above $70 a barrel last week, the highest since October.
However, crude inventories remain near 19-year highs and demand in the U.S., the world's largest consumer of oil, is sluggish.
Wednesday's release of petroleum inventory data from the Energy Department's Energy Information Administration could provide some insight about crude demand. Analysts expect a rise of 800,000 barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Stocks unexpectedly rose last week after dropping the previous three weeks.
Traders are also eyeing the U.S. dollar, as a weaker American currency would bolster prices since investors often look to commodities such as crude as a hedge against inflation.
The euro gained to $1.3863 on Tuesday from 1.3927 the previous day.
In other Nymex trading, gasoline for July delivery was steady at $1.94 a gallon and heating oil rose 1.25 cents to $1.78. Natural gas for July delivery was down 2.7 cents at $3.70 per 1,000 cubic feet.
In London, Brent prices gained 42 cents to $68.30 a barrel on the ICE Futures exchange.
by the associated press
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