Oil prices advance above $73

SINGAPORE: Global oil prices advanced above $73 a barrel in Asian trade Friday, after an overnight dip, on hopes of increase in fuel demand.

Light sweet crude for January delivery was seen trading at $73.09 a barrel at 11.45 a.m Singapore time while Brent crude was at $73.54 a barrel at the same time.

Oil has gained 4.6 percent this week, the most since the week ended Oct. 16, after the Federal Reserve said factories produced more goods in November than anticipated, signaling fuel demand may rise.

Crude prices dropped Thursday as the dollar strengthened against the euro, damping the appeal of commodities as an alternative investment. Dollar fell to $1.4390 per euro in Asian trade from $1.4338 yesterday in New York.

However, natural gas prices jumped Thursday after the government reported that supplies fell by the largest amount ever for this time of year as frigid weather chilled parts of the U.S. Midwest and Northeast.

The natural gas contract for January delivery climbed 30.6 cents, nearly 6 percent, to settle at $5.768 per 1,000 cubic feet on the New York Mercantile Exchange.

The Organization of Petroleum Exporting Countries, which pumps about 40 percent of the world’s oil, will meet next week in Luanda, Angola. The 12-member group announced 4.2 million barrels a day of output cuts in 2008.