Oil hovers near $73 amid mixed US economic data

       Oil prices hovered near $73 a barrel yesterday in Asia as mixed economic data from the US point to a slow recovery.
       Benchmark crude for October delivery was down 31 cents to $72.60 a barrel by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange. On Thursday, the contract fell 92 cents to settle at $72.91.
       The Se ptember contract, which expired Thursday, advanced 12 cents to end at $72.54.
       Investors are mulling news that suggests US consumption remains weak as the economy recovers from recession.
       The Labour Department on Thursday said the number of first-time unemployment claims rose unexpectedly for the second straight week. And the Mortgage Bankers Association said more than 13% of homeowners with a mortgage are either behind on their payments or in foreclosure.
       "There are no real signs that consumption in the US is picking up,' said Ben Westmore, energy analyst with National Australia Bank in Melbourne."Until we see that, investors won't be assured that the recovery is imminent."
       Investors were cheered earlier this week when the Energy Information Administration said crude in storage fell by 8.4 million barrels last week, suggesting demand could be improving.
       On Thursday, the Philadelphia Federal Reser ve said factor y activity in the mid-Atlantic region jumped back into positive territory in August, reaching its highest level since November 2007.
       Meanwhile, the Conference Board's economic forecasting gauge, the Index of Leading Economic Indicators, rose for the fourth straight month during July.
       'The data is quite volatile," Westmore said. "If we see more inventory draws,oil could break through the $75 a barrel mark."
       In other Nymex trading, gasoline for September delivery rose 0.89 cent to $1.99 a gallon and heating oil was steady at $1.88. Natural gas for September delivery held at $2.94 per 1,000 cubic feet.
       In London, Brent prices fell 7 cents to $73.26 a barrel on the ICE Futures exchange.
       Later yesterday, traders will focus on a speech by Federal Reserve chief Ben Bernanke after recent mostly positive data in the United States _which is the world's biggest energy consuming nation.
       The Conference Board, a US business research firm, said Thursday its leading economic index rose for the fourth straight month in July.
       The Federal Reserve index of the m anufacturing sector in the Philadelphia,Pennsylvania region turned positive in August, its highest level since November 2007, the month prior to the economy's official entry into recession.