Oil hovers below $69 amid weak crude demand

Oil prices hovered below $69 a barrel today in Asia as investors weighed concerns about weak crude demand against optimism of a global economic recovery.

Benchmark crude for October delivery was down 21 cents at $68.66 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Yesterday, the contract fell 43 cents to settle at $68.86.

Oil has meandered between $65 and $75 this summer as crude stocks soar and traders eye slumping consumer spending.

US oil inventories are higher now than in May, and analysts expect demand to drop off in the autumn following the summer driving season.

Investors will be looking at supply data from the American Petroleum Institute late today and the Energy Information Agency on Wednesday for clues about the consumption trend. Analysts expect inventories to drop 3.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Crude investors have also been mulling the US dollar, which fell to its lows of the year last week. The dollar rebounded late last week, sparking a $4 drop in oil prices.

The euro was steady today in Asian trading at $1.4624 and the dollar held near 91 yen.