Oil below $72 on concerns economic recovery slow

       Oil prices weakened ye sterday in Asia, dampened by concerns that a recovery in the US economy may be slower than expected.
       Benchmark crude for October delivery fell 81 cents to $71.66 a barrel at late afternoon Singapore time in electronic trading on the New York Me rcantile Exchange. The contr act fell 3 cents to settle at $72.47 on Thursday.
       Victor S hum, an energy analyst with consultancy Pur vin & Gertz in Singapore, said oil prices pulled back in tandem with a slide in regional stock markets and a stronger US dollar.
       The moves followed new US government data indicating a slow economic recovery, which may mean less demand for energy by the world's largest crude user in the near term.
       "There is a supply overhang in both crude oil and products. Oil pricing at a $70 plus level is quite vulnerable given the weak fundamentals," Shum said.
       The recession has sapped American fuel consumption, and US oil stockpiles are 14% larger than last year. The Energy I nfor mation Administration said Wednesday that the country also is sitting on a sea of distillate fuels including heating oil, with stockpiles approaching a 27-year high.
       The government reported Thursday that natural gas stockpiles continue to grow as well and are now at 16.4%above the five-year aver age for this time of year.
       There are some bright spots.The Labour Department said new claims for unemployment benefits fell to the lowest level since July. And the Commerce Department said housing construction in August surged to the highest level in nine months with a flurr y of new apar tment building projects.
       While on the surface that would suggest energy consumption may rebound, the jobless numbers however, are far below levels that would indicate a healthy economy.
       Shum said oil has traded within the $65-$75 a barrel since July and likely to stay within this range in the coming months.
       In other Nymex trading, gasoline for October delivery slipped 0.72 cent to $1.8440 a gallon, and heating oil fell 0.8 cent to $1.8329 a gallon. Natural gas rose 6.7 cents to $3.515 per 1,000 cubic feet.
       In London, Brent crude fell 71 cents to $70.84.
       Shares in Asia followe d the New York lead yesterday after three days of gains.
       Westmore said however that betterthan-expected economic data from the United States limited the fall in oil prices on hopes that energy demand will soon pick up in the world's largest economy and energy consumer.