SINGAPORE: Global oil prices recovered in early Asian trade Wednesday as the equity markets turned positive amid weak dollar.

light sweet crude for delivery in May was seen trading at $84.39 a barrel at 11.30 a.m Singapore time while Brent crude was at $85.01 a barrel in London.

Analysts said expected increase in US stockpiles hurt oil prices Tuesday but rising stocks and weak dollar helped it to recover in Asian trade.

Oil climbed to trade above $84 on Wednesday, ending a five-session losing streak, as rising stock markets and a weaker dollar offset an industry report showing gains in U.S. inventories of every fuel category.

US crude stockpiles rose in line with expectations by 1.4 million barrels in the week to April 9, the API said, while gasoline stocks increased 1.6 million barrels and distillates including heating oil and diesel climbed by a larger-than-expected 1.7 million barrels.

On Tuesday, oil prices fell as the International Energy Agency warned about potential risks to the economic recovery posed by high energy costs.

New York's main contract, light sweet crude for delivery in May, dropped 29 cents to $84.05 a barrel while Brent North Sea crude for May also slipped five cents to $84.72.

The IEA revised upward its forecast for global oil demand in 2010 by 30,000 barrels per day owing to unexpectedly strong economic activity in the United States, Asia and the Middle East. 
 

Source: Commodity Online