| GEO Business|
Oil rises to near $82, EIA data eyed
| Updated at: 1051 PST, Wednesday, November 24, 2010|
SINGAPORE: Oil rose to near $82 on Wednesday, rebounding from losses seen in the previous session, as expectations of improved demand in top consumer United States raised investors' risk appetite.
Weekly data from the United States is expected to show a drop in crude oil inventories last week, reflecting strong demand, although data from an industry body showed a rise in crude stocks.
U.S. crude for January CLc1 rose 43 cents to $81.68 a barrel at 0312 GMT, after it slipped on Tuesday in choppy trading. ICE Brent LCOc1 was up 42 cents to $83.67 a barrel.
Commodities have been pounded recently by a stronger dollar and risk aversion amid euro zone debt worries and, more recently, tensions in the Korean Peninsula. Oil has recorded weekly losses in two of the last three weeks.
The sharp fall in oil prices has provided a good chance for investors to buy on dips, said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
"The U.S. currency policy is quite obvious - pushing down the dollar to sustain the economy by encouraging exports," he said, adding that oil has a strong support at $80 a barrel and could reach $90 by early next year.
"In the medium to long term, the market is still in a good position for investors to start investing."
However, buying interest may not be strong now as investors are still closely watching the situations in Europe and the Koreas, Emori said.
The dollar index edged down 0.22 percent, after posting its strongest rise in over a month on Tuesday as North Korea's shelling of a South Korean island and the Irish debt crisis enhanced the currency's safe-haven appeal.