SINGAPORE - Oil prices rose above $68 a barrel Tuesday in Asia as traders mulled whether a weak global economy justified a doubling of crude since March. Benchmark crude for July delivery was up 40 cents at $68.49 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Monday, it fell 35 cents to settle at $68.09.
Oil prices have joined a surge in equity markets on investor optimism that the worst of a global recession is over. Crude touched above $70 a barrel last week, the highest since October.
However, crude inventories remain near 19-year highs and demand in the U.S., the world's largest consumer of oil, is sluggish.
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Wednesday's release of petroleum inventory data from the Energy Department's Energy Information Administration could provide some insight about crude demand. Analysts expect a rise of 800,000 barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Stocks unexpectedly rose last week after dropping the previous three weeks.
Traders are also eyeing the U.S. dollar, as a weaker American currency would bolster prices since investors often look to commodities such as crude as a hedge against inflation.
The euro gained to $1.3863 on Tuesday from 1.3927 the previous day.
In other Nymex trading, gasoline for July delivery was steady at $1.94 a gallon and heating oil rose 1.25 cents to $1.78. Natural gas for July delivery was down 2.7 cents at $3.70 per 1,000 cubic feet.
In London, Brent prices gained 42 cents to $68.30 a barrel on the ICE Futures exchange.
