Oil edges up as euro recovers

Oil edged up in Asian trade Tuesday as the European single currency recovered, spurring investor demand for crude futures, analysts said.

New York's main futures contract, light sweet crude for delivery in July gained nine cents to 71.53 dollars a barrel while Brent North Sea crude for July delivery was up three cents to 72.15 dollars.

"The euro has been getting stronger against the US dollar and stock markets in Asia have steadied this morning," said Ken Hasegawa, an energy desk manager with the Newedge brokerage in Tokyo.

"These factors pushed the crude oil price higher," he told AFP.

Pressure on the euro eased against major currencies Tuesday but the unit remained depressed a day after plunging to a four-year low on deepening fears over Europe's debt woes, dealers said.

The euro changed hands at 1.1960 dollars in Tokyo morning trade, up from 1.1919 in New York on Monday. Against the yen, it fetched 109.32 against 109.00 in New York.

A weaker US currency tends to improve demand for dollar-priced crude oil, which becomes more attractive to buyers using stronger currencies. In turn, that pushes prices higher. Singapore, Tuesday (AFP)