Oil closes in on US$73 a barrel

SINGAPORE - Oil prices rose to nearly US$73 a barrel yesterday as investors worried about a weak US economic recovery amid light holiday trading volume.

Benchmark crude for August delivery was up US38c to US$72.52 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost US81c to settle at US$72.14 on Friday (US time). US markets are closed today for the Fourth of July holiday.

Oil prices fell the previous six trading sessions and dropped almost 10 per cent last quarter amid ongoing fears about Europe's financial crisis and slowing economic growth in China.

The Labour Department says the US economy added a net 83,000 workers in June - more than May but fewer than March and April, stoking concerns that global economic growth and crude demand could be slowing.

"The balance of crude oil price risks appears skewed towards the downside" because of "negative demand shocks from a sluggish economic recovery", ANZ bank said. It expects crude to trade between US$65 and US$75 a barrel this month.

In other Nymex trading in August contracts, heating oil rose US0.95c to US$1.9250 a gallon, petrol added US1.23c to US$1.9900 a gallon and natural gas jumped US5.3c to US$4.740 per 1000 cubic feet.

- AP