Oil prices above $78 in Asia on bargain hunting

KUALA LUMPUR, Malaysia (AP) — Oil prices rose above $78 a barrel today in Asia, spurred by bargain hunting amid a weaker dollar.

Benchmark crude for February delivery was up 2 cents to $78.02 a barrel at early afternoon Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. On Monday, the contract fell to as low as $77.07 before settling at $78 in European trade. The U.S. markets were closed Monday for the Martin Luther King public holiday.

“A combination of investors looking at prices approaching $77 as a buy opportunity and positive European equities performance have caused a turnaround in oil,” said Victor Shum, energy analyst with consultancy Purvin & Gertz in Singapore. European stock markets rose Monday amid speculation of a pickup in corporate deal making though Asia’s markets mostly fell today.