Oil rises in Asia on US outlook

Oil prices reversed earlier losses in Asian trade yesterday after rallying in New York on expectations of better demand, spurred by an upbeat outlook on the US economy, analysts said.
New York's main futures contract, light sweet crude for delivery in July, rose 23 cents to $74.61 a barrel while Brent North Sea crude was up six cents to $74.33.
Prices had risen towards $75 late Wednesday on positive growth data for the United States, the world's largest energy consumer.
US Federal Reserve chief Ben Bernanke said the country's economy was on track to grow 3.5 percent this year as it sees only a "modest" impact from the eurozone debt crisis.
"The market went close to $75 in the New York session and I think that was a pretty strong resistance level for the market," said Clarence Chu, a Singapore-based oil trader with Hudson Capital Energy.
"Last week we tested $75 a couple of times but since then, the market has been going back down. So I see it as the market hit a resistance at 75 (dollars)," he told AFP.
Investor optimism had been boosted by a weekly report from the US Department of Energy showing a 500,000 drop in crude inventories after seeing record highs in recent weeks.
"The key thing for the market was really the drop," he said.
He added prices are likely to trade in a tight range between $70 and $75 a barrel for the near term.