Oil higher on hopes of stronger demand, Greek deal

SINGAPORE – Crude prices were higher in Asian trade Wednesday as traders reacted to a forecast that global oil demand is set to grow and hopes of a Greek debt deal, analysts said.

New York’s main contract, West Texas Intermediate (WTI) light sweet crude for delivery in March, gained 43 cents to $98.84 a barrel and Brent North Sea crude for March delivery was up one cent to $116.24 in morning trade.

“Crude prices have made gains with the EIA forecast of a growth in oil consumption and hopes of a solution to Greek debt trouble,” said Nick Trevethan, senior commodities strategist at ANZ Research.

“Brent crude however is being capped at the $116.50 range,” he told AFP.

In a report released Tuesday, the United States Energy Information Administration forecast that worldwide fuel demand is set to accelerate over the next two years.

“EIA expects world markets to continue to gradually tighten in 2012 and 2013, as increases in global consumption outpace production growth,” the report said.

Meanwhile, Greek officials are looking to wrap up weeks of negotiations to save the country from a historic default.