A report from Goldman Sachs predicted that global demand for crude would rise more than production capacity growth, boosting oil prices.
"It is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand, keeping it in line with available supply," Goldman Sachs said. "Further, we believe that the oil market has been too focused on the downside risks to prices and not focused enough on the upside risk should the economy avoid recession."
In other Nymex trading, heating oil rose 0.6 cent to $3.04 per gallon and gasoline futures gained 1.9 cents at $2.64 per gallon. Natural gas dropped 1.9 cents at $3.76 per 1,000 cubic feet.
Alex Kennedy in Singapore contributed to this report.
Copyright 2011 The Associated Press.