Oil prices edge lower on disappointing consumer spending

• Source: xinhua
• [08:26 July 15 2009]
• Comments

Oil prices edged lower Tuesday as government data suggested that the demand was still quite weak.

Light, sweet crude for August delivery dipped 17 cents to settle at $59.52 a barrel on the New York Mercantile Exchange, after touching a high of $61.46 a barrel due to short-covering activities in the earlier session.

The oil dropped back to negative territory after US data pointed to weak consumer spending in June. The Commerce Department said on Tuesday that retail sales rose 0.6 percent last month, more than forecast, however it was mainly because of the jump in gasoline prices. Excluding autos and gas sales, retail sales dropped for a fourth consecutive month.

Meanwhile, President Barack Obama said on Tuesday that the unemployment rate will keep growing for "several months," indicating the consumer demand would be still quite weak in the near future.

The market now was awaiting the inventories data due to be released on Wednesday, which was expected to result in another jump in gasoline and distillate supplies.

In London, Brent crude for August delivery rose 16 cents to $60.85 a barrel on the ICE Futures exchange.