LONDON — Oil prices edged higher on Monday in light trading volumes, with gains capped by China's latest bid to cool down its booming economy, traders said.
New York's main futures contract, light sweet crude for delivery in March, added 14 cents to 74.27 dollars a barrel.
Brent North Sea crude for March delivery rose by just five cents to 72.95 dollars a barrel at 1245 GMT.
Trading activity was subdued amid holidays across much of Asia, including China, and in the United States.
"Owing to the public holidays both in the US and in China, we expect the price to move sideways today (Monday) on thin trading," said Commerzbank analysts in a research note to clients.
Prices had plunged Friday on the back of China's latest attempt to control its booming economy.
The People's Bank of China announced it would raise the deposit reserve ratio for banks by 50 basis points as of February 25, the second increase since the start of the year.
The hike in the ratio -- the minimum amount of money that banks must keep in reserve and not use for lending or other purposes -- was seen as the latest sign that Beijing is moving to prevent its economy overheating.
"While Beijing's tighter monetary stance should ward off inflation in the country and keep the domestic economy from overheating, it may also stifle interest in global commodity markets, including oil," added analysts at the JBC Energy consultancy in Vienna.
The market also dived after news of an unexpected rise in crude stockpiles in the United States, indicating sluggish demand as the world's biggest energy consuming nation emerged from recession.
"The oil price fell temporarily below the mark of 73 dollars per barrel on Friday, triggered by another monetary tightening in China," Commerzbank analysts added on Monday.
"After the publication of the US inventory data, however, it regained some ground and traded at 74 dollars this morning."
A key US inventories report for the week ending February 5 said that crude stockpiles rose for a fourth week running, by 2.4 million barrels. That compared with analyst expectations for a gain of 1.3 million barrels.
Also, gasoline stocks rose much more than expected, according to the report, usually published on Wednesdays but delayed due to a snowstorm in the northeastern US.
Oil prices have been under pressure in recent weeks by stubborn concerns that the Greek debt crisis may infect other eurozone countries and hamper economic recovery -- and demand for energy.
Eurozone finance ministers, meeting as the Eurogroup in Brussels later on Monday, were expected to back an exceptional measure to instill some budgetary discipline into debt-plagued Greece.
EU leaders stopped short last Thursday of offering a bailout to rescue Greece.
