Oil Prices Hover Near $78

SINGAPORE: Oil prices lingered near $ 78 a barrel Wednesday in Asia after the U.S. crude supplies unexpectedly rose, suggesting demand in the world’s largest economy remains weak.

The benchmark crude for January delivery was flat at $ 78.37 at noon Singapore time in electronic commerce in the New York Mercantile Exchange. The contract rose $ 1.09 to settle at $ 78.37 Monday.

U.S. crude inventories fell unexpectedly last week, the American Petroleum Institute said late Tuesday. Crude stocks rose 2.9 million barrels while analysts had expected a fall of 1.3 million barrels.

The Energy Information Administration plans to announce its inventory report later Wednesday.

Oil prices below $ 76 a barrel last week after the Dubai World conglomerate, said it would delay the payment of interest on 60 billion U.S. dollars of debt. But prices recovered early this week as investors were encouraged by signs of improving demand for oil in Asia.

Crude has traded between $ 75 and $ 82 a barrel for over a month.

“Prices should remain within a range,” Societe Generale said in a report. “However, there is solid ground.”

In Nymex trading, natural gas shed 15.9 cents to $ 4.689 per 1,000 cubic feet. Heating oil rose 1.57 cents to $ 2.0636 and gasoline gained 1.33 cents to settle at $ 2.0248.

In London, Brent crude for January delivery gained 14 cents to $ 79.49 on the ICE Futures exchange.

Tags: Oil Prices