Investing.com - Crude oil futures rose in Asian trade Wednesday, testing USD90 a barrel, as investor concerns over European debt eased and the International Energy Agency reduced its estimates for global oil stockpiles.
On the New York Mercantile Exchange light, sweet crude futures for October delivery traded at USD89.97 a barrel during early Asian trade, rising 0.13%, after hitting a daily low of USD88.75.
On Tuesday, German Chancellor Angela Merkel expressed confidence that rescue measures to address Greek debt were progressing, and rejected the notion that Greek bankruptcy would provide a quick solution to the euro-zone’s debt crisis.
Stock markets in the U.S. and Europe closed higher on hopes that Greece would take the steps needed to win approval from the ECB, the International Monetary Fund and the European Commission to receive its next batch of funding.
Earlier Tuesday, the International Energy Agency cut its forecast for oil demand through 2012, citing a sluggish global economy.
The IEA forecast oil demand would drop by 160,000 barrels a day in 2011 and by 190,000 barrels per day in 2012.
By the end of 2012, the IEA expects Libyan oil production to hit 1 million barrels per day within six months, and return to pre-war levels of 1.5 million barrels a day within 18 months.
French lender Societe Generale said in a report earlier that it expected Brent prices to average USD98.30 a barrel in the fourth quarter of 2011, as Libyan oil supplies start returning to the market
A rising U.S. dollar helped to limit oil futures, as dollar-denominated futures contracts tend to fall when the dollar rises.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.02% to 77.60.
On the ICE Futures Exchange Brent oil futures for October delivery gained 0.32% to trade at USD109.83.
The Energy Information Administration was scheduled to release its weekly report on
U.S. oil stockpiles later Wednesday.