Singapore: World oil prices today rose by over one dollar in Asian trading, dealers said, after previous sharp falls overnight in response to a bigger-than-expected rise in US crude reserves.

In morning trade, New York's main contract, light sweet crude for June delivery surged 1.57 dollars to 115.03 dollars per barrel from 113.46 dollars at the close of floor trading during US hours yesterday.

At current levels, New York oil prices are down nearly five dollars from the record trading high of 119.93 dollars struck on Monday.

The latest price surge may be short-lived if the dollar continues to recover against the major currencies and worries over energy demand flare up again, dealers said.

"I imagine anyone who is bullish is looking at this opportunity to buy but I expect it to be short-lived," said Rowan Menzies, head of research at investment firm Commodity Warrants Australia.

"I think the dollar will firm and people will start getting more and more concerned about demand," he said.

The US Federal Reserve on Wednesday cut the fed funds rate by a further quarter-point, as expected, to 2.0 per cent. The US central bank also decided to lower the discount rate it charges banks by 25 basis points to 2.25 per cent.

The dollar was generally stable after the widely expected rate cut. The US currency fell to a record low of 1.6019 to the euro on April 22 but has since recovered, changing hands at around 1.5634 in Asian trading today.
Source : PTI