SINGAPORE (Commodity Online) : World oil prices advanced towards $73 in Asian trade Thursday mainly on a weak dollar after overcoming impacts over a massive increase in US crude reserves.
Light sweet crude for October delivery was seen trading at $72.81 a barrel at 11.30 a.m Singapore time while Brent crude for October delivery was at $73.85 a barrel in London.
Analysts said a weak dollar offset negative impacts for oil due to a massive increase in US inventories.
The greenback weakened against major currencies including the euro. The euro was trading at $1.2691 against the greenback in morning Asian trade as compared with $1.2655 in New York late yesterday.
A weaker greenback entices buyers using stronger currencies to snap up dollar-denominated crude due to its comparatively cheaper value.
On Wednesday, oil prices settled higher despite the US DoE said crude inventories soared 4.1 million barrels last week while gasoline stockpiles rose 2.3 million barrels, against forecasts for a 500,000-barrel decline.
Rising stockpiles indicate weak demand in the world's biggest energy consuming nation.
Benchmark crude for October delivery rose 89 cents to settle at $72.52 a barrel on the New York Mercantile Exchange. Crude has fallen about 11.5 per cent from around $82 a barrel early this month.
In London, Brent crude rose $1.10 to settle at $73.48 a barrel on the ICE Futures exchange.