Crude oil prices rose above $73 per barrel in Asia on Tuesday amid a ten-fold jump in trading volumes as investors bought crude as a hedge against a weakening dollar and inflationary fears. Oil prices jumped after fresh attacks on oil installations in Nigeria and on reports that China would boost its petroleum reserves.

Benchmark crude for August delivery was up $1.06 to $72.55 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange after trading as high as $73.38. On Monday, it gained $2.33 to settle at $71.49.

Royal Dutch Shell has confirmed that it has shut part of its operations in Nigeria after militants attacked an oil facility. Algeria and Qatar have said that there is no need to raise production.

The jump in oil prices came despite a report from the International Energy Agency predicting a slower rebound in global energy demand.

The IEA said demand is likely to grow by an average of 0.6 per cent annually over the 2008-2014 period.

China also increased fuel prices by nearly 10 per cent—the third increase this year—adding to the support. Wall Street on Monday advanced on higher oil prices, led by commodity stocks. The Dow Jones industrial average rose 90.99, or 1.1 per cent, to 8,529 after seesawing in the early trade.