Oil rises to near $ 89 as dollar weakens (PA) (Yahoo!)

Singapore - oil prices exceeded $ 89 per barrel Thursday in Asia as a weakness of the US dollar is crude cheaper for investors with other currencies.

Oil reference for January delivery rose by 94 cents to $89.22 a barrel to Singapore late afternoon in electronic commerce on the New York Mercantile Exchange. Contract lost 41 cents to settle at $88.28 Wednesday.

Oil has oscillated in top-$ of the 1980s, this week - reach a maximum of two years for $90.76 Tuesday - as traders mull how demand global crude oil can grow in 2011. In the absence of any solid catalyst market oil or economic data, the gross prices often follow currency and stock markets.

The euro has $1.3310 Thursday to $1.3261 late Wednesday when the dollar dropped to 83.80 Yen yen 84.00.

Some analysts expect the rise in gross consumption of Asia and other emerging economies continue to stimulate global demand next year. World consumption of oil reached a record 86.7 million barrels per day in the third quarter and will probably jump to 88.1 million in 2011, according to energy consultant Wood Mackenzie.

About 85% of the growth of global demand for 2.5 million barrels per day this year will come from developing countries, which will be probably also account 80 per cent of the growth of demand for the next year 2012, said Wood Mackenzie.

"The world oil market is divergent as never before," Wood Mackenzie analyst Francis Osborne said. "While the economy in mature OECD regions continues to fight and with it demand oil in emerging markets generally was full speed ahead on two fronts".

"Leading to this recovery is China and the rest of Asia.

In the other Nymex trading contracts January, heating oil rose 1.9 cents to $2.48 per gallon gasoline purchased term 2.7 cents to $2.33 per gallon and gas jumped cents $2.9 to 4.64 per 1,000 cubic feet.

In London, gross Brent has increased ICE exchange future 66 cents to 91.43 $ per barrel.