Oil Is Steady as Demand Concerns Outweigh Signs of Economy Gain

June 19 (Bloomberg) -- Crude oil traded above $71 a barrel in New York as short-term demand concerns outweighed signs of an economic rebound later this year in the U.S., the world’s biggest energy consumer.

The index of leading economic indicators rose in May and the number of Americans receiving jobless benefits fell for the first time since January, separate reports showed. U.S. demand for petroleum products averaged 18.5 million barrels a day over the past four weeks to June 12, down 6 percent from a year ago, the Energy Department said on June 17.

“The reaction to the U.S. data overnight was relatively muted despite it being on the good side of expectations,” said David Moore, a commodity strategist with Commonwealth Bank of Australia Ltd. in Sydney. “The fact that we’ve moved quite high at a time the international economy is in a recession means oil prices at $70 are at a solid level.”

Crude oil for July delivery was at $71.53 a barrel, up 16 cents, in electronic trading on the New York Mercantile Exchange at 7:53 a.m. Singapore time. Prices are up 60 percent this year and reached a seven-month high of $73.23 on June 11.

Oil prices are poised to fall 0.7 percent through this week, for the first time in five weeks.

Brent crude for August settlement increased 21 cents, or 0.3 percent, to end the session at $71.06 a barrel on London’s ICE Futures Europe exchange.