SINGAPORE: Oil was up in Asia on Friday, with dealers buying up the commodity after a drop in prices over the past few days, analysts said.
Investors are also waiting for the results of a meeting in Vienna later Friday of the Organisation of Petroleum Exporting Countries (OPEC) at which the oil cartel is expected to maintain its output ceiling.
New York’s main contract, light sweet crude for delivery in July increased two cents to $93.63 a barrel and Brent North Sea crude for July delivery added ten cents to $102.29 in mid-morning trade.
“After a few days of prices easing back, people are now happy to buy at this level,” Jason Hughes, head of sales trading at CMC Markets in Singapore, told AFP.
“There is an OPEC meeting this weekend, so perhaps investors are placing some bets on what will happen over the next few days.”
OPEC is widely expected to maintain its collective output ceiling amid lingering worries over the health of global energy demand.
Analysts expect that OPEC will leave its oil output ceiling at 30 million barrels per day, where it has stood since the end of 2011, despite actual output running above this target level.
Iran has called for lower output in order to maintain and even boost crude price levels, but the oil ministers of Iraq, Venezuela and Angola have indicated support to keep the cartel’s output unchanged.