Oil recovers after overnight slump

SINGAPORE (Commodity Online) : Global oil prices advanced in Asian trade Friday after an overnight decline promoted investor buying.

Light sweet crude for February contract climbed was seen trading at $88.94 a barrel at 12.00 noon Singapore time while Brent crude was at $ 93.92 a barrel in London.

Analysts however said the black gold remains highly volatile ahead of key US jobs data which is due later Friday.

Economists raised forecasts for U.S. jobs growth this week, with the median estimate calling for a gain of 150,000 in December and a drop in the unemployment rate to 9.7 percent.

The single currency dropped against the dollar in Asia on Friday, dragged down by lingering worries about eurozone sovereign debt problems and amid rising hopes for US recovery, dealers said.

A stronger greenback makes dollar-traded commodities like crude oil more expensive for investors, dampening demand and leading to lower prices.

Oil prices began the week by reaching two-year highs amid confidence in increased global demand, after the US economy showed more signs of recovery.

On Thursday, oil slumped as the dollar gained against the euro on signs that the U.S. economy is improving.

New York's main contract, light sweet crude for February slumped $1.92 to $88.36 .Brent North Sea crude for delivery in February dropped 98 cents to $94.52 a barrel in London.