SINGAPORE (AP) - Oil prices hovered near $71 a barrel today in Asia with gains tempered by a U.S. crude supply report that showed an unexpected rise in inventories last week.
Benchmark crude for January delivery was up 40 cents to $71.09 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Yesterday, the contract added $1.18 to settle at $70.69.
Prices surged after the Organization of Petroleum Exporting Countries forecast that the world will consume 70,000 barrels more crude next year than previous estimates. The 12-nation group said developing nations would drive demand higher.
Traders will be watching today's weekly update on supplies from the Energy Department. Energy inflation provider Platts says crude supplies are expected to have declined by 2 million barrels.
