New York's main contract, light sweet crude for shipping in October, was up 80 cents to $88. 99 for each barrel in morning trade, boosted mainly by a weaker US dollar making dollar-priced oil cheaper, perking up demand.
Brent North Ocean crude for October delivery fell 52 cents to $112. twenty five, with sentiment subdued after the Organisation of Petroleum Exporting Countries (Opec) projected lower global oil demand this season and in 2012.
"We see that crude oil is actually gaining alongside a weaker dollar, " said Ker Chung Yang, the commodity analyst at Phillip Futures in Singapore.
He stated however that Opec's latest monthly report forecasting lower power demand was limiting gains.
"This is bearish news for that oil markets, " Ker said.
Opec, citing the poor economic system, said oil demand for this year was forecast to become 87. 99 million barrels per day (bpd), down from the previous forecast of 88. 14 million bpd.
For 2012, demand was likely to average 89. 26 million bpd, down from the July estimate of 89. 44 million bpd.
The 12-member oil cartel cited weak demand in the usa and the effects of financial strains, particularly among the actual developed nations, which were dragging down demand in The far east and India.
Oil traders were also monitoring data in the American Petroleum Institute due later today. Analysts are predicting inventories will decline by three million barrels because of supply disruption caused by tropical storm Lee.