Oil prices rose in Asian trade today, boosted by a weaker dollar but further gains were capped as OPEC forecasts of lower global energy demand dampened sentiment.
New York's main contract, light sweet crude for delivery in October, was up 81 cents at $89 per barrel. Brent North Sea crude for October delivery gained 61 cents to $112.86.
A weaker greenback makes dollar-priced crude cheaper to holders of other currencies, perking up demand and boosting prices.
Analysts also said that a report by the Organisation of Petroleum Exporting Countries forecasting lower global demand this year and in 2012 was limiting gains.
OPEC, citing the poor economic climate, said demand for this year was forecast to be 87.99 million a day, down from a previous estimate of 88.14 million. For 2012, demand was expected to average 89.26 million barrels, down from the August estimate of 89.44 million.
The 12-member oil cartel cited weak demand in the US and the effects of financial strains, particularly among the developed nations, which were dragging down demand in China and India.
Oil traders were also monitoring data from the American Petroleum Institute due later today. Analysts are predicting inventories will decline by three million barrels due to supply disruption caused by tropical storm Lee.
