Oil up in Asia on US optimism

SINGAPORE – Crude was up in Asia on Wednesday on renewed optimism over the US economy, the world’s largest oil consumer, analysts said.

New York’s main contract, West Texas Intermediate for August delivery, rose 22 cents to $97.11 a barrel and Brent North Sea crude for August gained 18 cents to $113.79.

“The economic news coming out of the US has been good.

Factory orders were up in May, and crude markets have reacted to this,” said John Vautrain, an analyst for Purvin and Gertz international energy consultancy in Singapore.

Data released Tuesday by the Commerce Department showed new orders for manufactured goods rose 0.8 percent in May, after a 0.9 percent drop in April.

The markets will also be watching reports due later this week about unemployment for signs of strength in the US economy.

However, worries over the impact of the eurozone debt crisis are expected prevent crude prices from rising sharply, analysts said.

“The European debt problem in Greece and now Portugal is a preoccupation of the market,” Jason Feer, analyst with Argus Media, told Agence France-Presse.