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NEW YORK: World oil prices climbed on Friday as investors shrugged off concerns that the US economic recovery could stall following a slower economic growth rate in the second quarter.
New York's main contract, light sweet crude for delivery in September, rose 59 cents to 78.95 dollars per barrel.
London's Brent North Sea crude for September also gained 59 cents to 78.18 dollars per barrel.
Prices fell below the 77-dollar level after the US government announced early Friday that growth slowed dramatically to 2.4 percent in the second quarter of this year, stoking fears that the recovery is losing steam.
The rate was sharply down from the first three months of the year, slamming the brakes on an already tepid rebound, although it was only slightly lower than the 2.5 percent expected by analysts.
In the first quarter, gross domestic product was revised to 3.7 percent, up substantially from a previously reported 2.7 percent.
But the oil market recovered in line with Wall Street stocks, which also clawed back after heavy losses.
"So much for energy traders looking to equity markets for guidance as it seemed to be reversed this week with oil leading the way," analysts at BMO Capital Markets said in a report.
The market performed generally well this week given the big US inventory build and disappointing economic data, they said.
"There does seem to be some bullish momentum but not enough yet to take (New York contract) out of the 70-80 dollars range that has dominated summer trading."
The US Department of Energy said on Wednesday that crude oil inventories jumped 7.3 million barrels last week in the United States, indicating sluggish demand in the world's biggest economy.
That was the strongest weekly increase since October 2008 and confounded market expectations for a drop of 1.4 million barrels.
Gasoline (petrol) stocks rose 100,000 barrels, below analyst expectations for a build of 500,000 barrels, and distillates, which includes heating oil and diesel, rose by 900,000 barrels, while analysts projected a 2.1-million-barrel gain.
The data came on top of growing evidence of weak US consumer confidence which has sapped hopes for a strong economic recovery.
- AFP/de
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