SINGAPORE: Oil was higher in Asian trade Tuesday as investors seek to buy at current levels after recent declines on demand concerns, analysts said.
A weaker US currency has also pushed up investor demand for dollar-denominated crude futures, they added.
In early deals, New York's main contract, West Texas Intermediate crude for July delivery, was 85 cents higher at $84.83 a barrel and Brent North Sea crude, also for July, rose by 54 cents to $99.39.
"This morning, prices are edging up and the sentiment now is that oil's oversold the last few days and so some see this current pricing as a buy opportunity, said Victor Shum, an analyst with energy consultancy Purvin and Gertz.
He said another factor supporting buying was the euro's rise against the dollar.
The euro was trading higher at $1.2532 in Asian trade Tuesday compared with $1.2494 late Monday in US trades.
Traders will be watching the outcome of telephone talks among finance ministers from the Group of Seven and other economic powers later Tuesday.
They are expected to focus on the eurozone crisis and weak European banks.
"Those discussions also take place with some of the non-European members of the G20 who are concerned... with the potential consequences of a crisis in the eurozone," Canadian Finance Minister Jim Flaherty said in a press conference.