Oil hovers above $73 as traders eye uneven US recovery amid light holiday trading

Oil hovers near $73 amid light 4th of July trading

SINGAPORE — Oil prices hovered above $73 a barrel Monday in Asia as investors worried about a weak U.S. economic recovery amid light holiday trading volume.

Benchmark crude for August delivery was up 22 cents to $72.36 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 81 cents to settle at $72.14 on Friday.

U.S. markets are closed Monday for the Fourth of July holiday.

Oil prices fell the previous six trading sessions and dropped almost 10 percent last quarter amid ongoing fears about Europe’s financial crisis and slowing economic growth in China.

On Friday, the Labor Department said the U.S. economy added a net 83,000 workers, which was more than May but fewer than March and April, stoking concerns that global economic growth and crude demand could be slowing.

“The balance of crude oil price risks appears skewed towards the downside” because of “negative demand shocks from a sluggish economic recovery,” ANZ bank said in a report.

ANZ said it expects crude to trade between $65 a barrel and $75 this month.

In other Nymex trading in August contracts, heating oil rose 0.70 cent to $1.9225 a gallon, gasoline added 0.84 cent to $1.9861 a gallon and natural gas jumped 6.6 cents to $4.753 per 1,000 cubic feet.

Brent crude was up 30 cents to $71.95 a barrel on the ICE futures exchange.