SINGAPORE (Dow Jones)--Crude futures in Asia was up by more than $1 a barrel Friday, but came off their highs due to a lack of clear direction with regional equities mixed. The jump in Nymex crude during Asian morning trading hours may have been due to traders covering their short positions after the New York session ended with slight gains, said Jonathan Kornafel, director of Asia for Hudson Capital Energy. "It could have been many shorts panicking," he said. At 0658 GMT, the New York Mercantile Exchange contract for light, sweet crude for September delivery was trading at $70.70 a barrel, up 18 cents. September Brent crude on the ICE futures exchange was up 24 cents at $73.72 a barrel. There hasn't been much excitement for Nymex crude, with oil trading between $70 and $72 a barrel for most of the week, he said. However, there are expectations that prices could drift higher on fund buying, Kornafel said. "There are enormous amounts of liquidity out there with only a few places it can go." Barclays analysts, meanwhile, remained bullish on oil demand, expecting prices to improve as the global economy turns around. "Improving demand amid continued supply tightness should accelerate the pace of erosion of the inventory overhang, lending support to (oil) prices," the analysts said in a note to investors. However, analysts led by Stephen Schork said this week's oil inventory report from the U.S. Energy Information Administration showed that crude supplies "ballooned" - signalling more bearishness for oil. "We have crude coming out of the wazoo," the analysts said in a note to subscribers. "Why? Because demand is lacking." ICE gasoil for September changed hands at $606.25 a metric ton, down $1.75 from Thursday's settlement. Front-month September reformulated gasoline blendstock, or RBOB, was up 108 points at 203.00 U.S. cents a gallon. September heating oil was up 82 points at 191.10 cents a gallon. By Wayne Ma, Dow Jones Newswires; +65 6415 4065; wayne.ma@dowjones.com (END) Dow Jones Newswires

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