US light crude oil at $79 pb

Oil hovered above $79 a barrel Wednesday in Asia after a report showed a surprise increase in U.S. crude supplies, suggesting demand remains weak. Benchmark oil for August delivery was up 12 cents at $79.48 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 15 cents to settle at $79.36 in New York on Tuesday. In London, Brent crude for August delivery was down 16 cents at $92.86 per barrel on the ICE Futures exchange. The American Petroleum Institute said late Tuesday that crude inventories rose 500,000 barrels last week whereas inventories of gasoline increased 400,000 barrels. Crude has fallen to near eight-month lows from $106 less than two months ago amid signs economic growth and oil demand are slowing in the U.S., Europe and China.