Oil Up Past $96 on Higher Price Forecast

Source:

"Oil prices bounced back."

Associated Press, Pablo Gorondi and Alex Kennedy

Oil prices bounced back above $95 a barrel Tuesday on the back of forecasts for more expensive crude in 2012, though gains were limited by the dollar's rise and doubts about global demand.

By early afternoon in Europe, benchmark oil for August delivery was up 51 cents to $95.45 a barrel in electronic trading on the New York Mercantile Exchange. Crude last settled down 48 cents at $94.94 on Friday. Financial markets in the U.S. were closed Monday for the Independence Day holiday.

In London, Brent crude for August delivery added 89 cents to $112.28 a barrel on the ICE Futures exchange.

Weighing on oil prices was a stronger U.S. dollar, which makes crude more expensive for investors with other currencies.

The euro fell to $1.4468 Tuesday from $1.4541 late Monday while the dollar rose to 81.12 yen from 80.75.

Crude fell to near $90 early last week after the International Energy Agency announced the gradual release of 60 million barrels of oil from strategic reserves.

But oil prices have rebounded to where they were before the IEA announcement as the dollar weakened against the euro after the Greek parliament approved austerity measures, averting a debt default.

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