Investing.com - Crude oil futures advanced in Asian trade Tuesday, as investors bought on dips after a two-day decline, and European debt concerns eased following reports that Greece would be receiving a new round of bailout funds.
On the New York Mercantile Exchange light, sweet crude futures for October delivery traded at USD88.88 a barrel during early Asian trade, rising 0.07%, after hitting a daily low of USD88.75.
A Wall Street Journal report cited two senior officials from the International Monetary Fund saying that Greece would receive its next installment of bailout loans later this month.
Greece’s government announced over the weekend it would be imposing new property taxes to cover a EUR2 billion shortfall in its budget for this year.
Earlier in the day, the Organization of Petroleum Exporting Countries lowered its forecast for global oil demand for 2011 and 2012, citing diminished economic growth in developed nations and a drop in U.S. demand.
OPEC said, in its monthly report, that world oil demand through 2011 was expected to total 87.99 million barrels per day, down from its previous forecast of 88.14 million barrels.
"Uncertainties in the oil market are increasing at a time when the recovery of the global economy is losing momentum and is becoming less evident," OPEC said.
For 2012, global demand was expected to average 89.26 million barrels per day, compared to OPEC’s August estimate of 89.44 million.
OPEC also forecast that Libyan oil production could reach one million barrels a day within six months, about two-thirds of pre-war levels.
A falling U.S. dollar helped to support oil futures, as dollar-denominated futures contracts tend to rise when the dollar falls.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased 0.02% to 77.84.
On the ICE Futures Exchange Brent oil futures for October delivery gained 0.16% to trade at USD110.86.