SINGAPORE (MarketWatch) -- Crude oil futures traded lower Thursday in Asia after the U.S. dollar strengthened broadly against other major currencies, making commodities such as crude less attractive to investors. "Crude isn't trading on fundamentals," said Ken Hasegawa, commodity derivative sales manager at Newedge Japan in Tokyo. "Oil is lower mainly due to technical reasons because of currencies." On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $72.41 a barrel at 0639 GMT, down $0.25 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.11 to $74.18 a barrel. "We don't expect much trading volume through to the end of the year," Hasegawa said. "Without any big news, the market will likely trade in the range of $65-$75 a barrel." On the other hand, the lack of trades could make oil prices vulnerable to a push higher, according to Jim Ritterbusch, president of Ritterbusch & Associates. "With trading becoming thinner ahead of the holidays and with the approach of Monday's January WTI contract expiration, some additional upside price follow through is certainly possible." However, "advances north of the $72 mark will prove difficult to sustain," he said in a note to subscribers. For oil prices to significantly recover, distillate demand needs to improve, according to analysts at Barclays Capital. "Some positive data flow yesterday on weather conditions should bode well for the dislocated part of the barrel," the analysts said in an investor note. "Temperatures in the U.S. northeast are finally falling and should provide some winter demand for the heating-oil market." Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 54 points to $1.8685 a gallon, while January heating oil traded at $1.9600, 58 points lower. ICE gasoil for January changed hands at $600.50 a metric ton, down $2.75 from Wednesday's settlement.

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