AFP reported that oil rose in Asia on hopes for a Chinese stimulus package and simmering geopolitical tensions following reports of a US Navy ship firing on a boat off Dubai's coast.

New York's main contract, light sweet crude for delivery in August 2012 was up 17 cents to USD 88.60 and Brent North Sea crude for September 2012 delivery gained 30 cents to USD 103.67.

Phillip Futures said in a report that lackluster growth figures from China leading to hopes for government intervention, coupled with the US Navy incident in the geopolitically sensitive Middle East, were supporting crude.

The report said that "Oil prices were lifted by hopes that signs of economic slowing will prompt stimulus measures, especially in China, and by news a US Navy vessel off the United Arab Emirates fired on a fishing boat that failed to heed warnings."

Official figures released recently showed that China's economy growing at its slowest pace in more than three years in the second quarter of 2012, disappointing traders despite meeting analyst forecasts. The lackluster growth figures led Chinese Premier Wen Jiabao to call Sunday for greater efforts to strengthen economic growth in the world largest energy consumer.

Source - AFP

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