Oil prices rise, remain below $74

World oil prices advanced yesterday but remained below

$74 as concerns about demand and a strengthening US dollar kept a hold on prices, analysts said.

New York's main futures contract, light sweet crude for delivery in March, gained 25 cents to $73.89 a barrel at 1100 GMT.

London's Brent North Sea crude for March delivery won 26 cents to $72.39.

"Even though it's up... it's quite small so pricing remains relatively flat below $74," said Victor Shum, a senior principal with international energy consultants Purvin and Gertz.

He added that prices could remain under $74 for the near term, with the overall market sentiment hampered by concerns over weak energy demand and a stronger dollar.

The euro lost more ground against the dollar yesterday as worries deepened about the state of the European economies in light of Greece's debt woes, dealers said.

Oil is traded in US dollars and a rise in the currency makes the commodity more expensive to holders of weaker units.

Crude futures had dipped slightly on Thursday on economic recovery concerns as the market shrugged off US President Barack Obama's moves to boost jobs and rein in debt.

Some analysts said prices were stabilising after falling 10 dollars in two weeks.

"The (New York) oil price held up relatively well and is trading largely unchanged at $74 per barrel," said Commerzbank analyst Eugen Weinberg in a note to clients.

"This should only be a short breather, after the oil price had already shed 10 dollars during the past three weeks."

Prices have plunged in recent weeks as traders have fretted over possible moves by China to rein in its booming economy, which is a major consumer of raw materials.

Oil also fell on Thursday as the head of Saudi oil giant Aramco sought to ease international concerns over dwindling crude stocks.

Khalid al Falih, Aramco's chairman and chief executive, hit out at "misleading" rhetoric that the world was weaning itself off fossil fuels, saying this did not give producers confidence to keep investing in future output.

He told a World Economic Forum session on the global energy outlook: "We feel that the whole issue that came to the surface and created a lot of concern about peak oil is behind us."