Oil prices were little changed today, hovering above $68 a barrel, as concerns about weak energy demand in the United States, the world's top energy consumer, were offset by a broad rise in Asian equities markets.
Oil prices, which fell 6.5 per cent last week, have been trading in a range between $65 and $75 a barrel since the start of August, with prices swinging on economic data as investors seek clues about the speed of a recovery from the recession.
UScrude for October delivery edged up 22 cents to $68.24 a barrel by 5.49am. The contract settled 6 cents higher at $68.02 a barrel on Friday.
London Brent crude rose 54 cents to $67.36 a barrel.
Oil had fallen by as much as 48 cents in early trading today amid demand concerns in the United States as the country's jobless rate struck a 26-year high and the summer holiday season, a period of strong gasoline demand, comes to an end.
But a broad rise in Asian shares, which was driven by a pledge by G20 leaders over the weekend to keep stimulus measures in place for longer and draft rules from China allowing more foreign portfolio investment, helped improved investors' risk appetite and lent support to oil prices.
Still, analysts said weak oil demand in the US would probably keep crude prices rangebound.
"As the long Labor Day weeked comes to an end, we're looking at the end of peak gasoline demand season in the US, which means we're now entering a period of slack seasonal demand with refineries scaling back their runs," said Toby Hassall, a commodities analyst at CWA Global Markets in Sydney.
Increased crude supplies from the Organization of Petroleum Exporting Countries (OPEC) due to slipping compliance, could also put downward pressure on oil prices in the near term, analysts said.
Reuters