Oil rises slightly to near $71 despite weak demand

[August 14, 2009]  SINGAPORE (AP) -- Oil prices rose slightly to near $71 Friday in Asia as investors brushed off bad U.S. economic news, betting instead the American economy, the world's largest crude consumer, will recover later this year.

Benchmark crude for September delivery was up 24 cents to $70.76 a barrel by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange. On Thursday, the contract added 36 cents to settle at $70.52.

Oil prices have oscillated near $71 a barrel for about two weeks as investors weigh lackluster U.S. consumer demand against expectations the economy could rebound strongly next year from recession.

The Commerce Department said Thursday that retail sales slipped 0.1 percent last month, while economists had expected a gain of 0.7 percent. The Labor Department said initial jobless claims grew more than expected to a seasonally adjusted 558,000.

In other Nymex trading, gasoline for September delivery rose 1.15 cents to $2.03 a gallon and heating oil gained 0.79 cent to $1.91. Natural gas for September delivery jumped 2.9 cents to $3.37 per 1,000 cubic feet.

In London, Brent prices rose 42 cents to $73.90 a barrel on the ICE Futures exchange.

[Associated Press; By ALEX KENNEDY]

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