Oil hovers near $71

SINGAPORE: Oil prices hovered near $71 a barrel Friday in Asia as a warm winter and struggling economy in the U.S. undermine demand for crude products like diesel and heating oil.

Benchmark crude for January delivery was up 33 cents to $70.87 at midday Singapore time in electronic trading on the New York Mercantile Exchange. On Thursday, the contract fell as low as $69.81 before settling down 13 cents at $70.54.

Oil prices have fallen about 13 percent since October on investor concern U.S. crude demand isn't picking up amid the broader economic recovery. Consumption of crude distillates, which include heating oil and diesel, has fallen about 20 percent from a year earlier, Barclays Capital said in a report.

In other Nymex trading in January contracts, heating oil rose 0.59 cent to $1.91 while gasoline was steady at $1.84. Natural gas fell 6.2 cents to $5.24 per 1,000 cubic feet.

In London, Brent crude for January delivery rose 42 cents to $72.28 on the ICE Futures exchange.