Oil higher in Asian trade on US optimism

SINGAPORE: Oil advanced in Asian trade Tuesday on hopes that the US economy will be able to find a way out of its slump without more monetary stimulus, analysts said.

In afternoon trade, New York's main contract -- light sweet crude for October delivery -- added 29 cents to $87.56 a barrel, and Brent North Sea crude for October delivery gained 49 cents to $112.37.

"It all has to do with confidence and with the fact that people believe the US has the ability (to bounce back)," said Jonathan Barratt, managing director with Commodity Broking Services in Sydney.

Meanwhile, the impact of Hurricane Irene on oil operations was relatively weak, analysts said.