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Oil extends gains as US slowdown fears ease

Oil costs extended gains on Thursday after U.S. financial information that might allay fears of an imminent economic downturn in the world's greatest economy, though issues over slower global demand suppressed the rally.

Information showed U.S. retail sales rose more than expected in July while another report showed a smaller sized than expected increase in the variety of Americans declare unemployment benefits.

Brent unrefined futures were up 92 cents, or 1.2%, at $ 80.68 a barrel at 1329 GMT. U.S. West Texas Intermediate crude futures rose 95 cents, or 1.2%, to $77.93.

The U.S. retail sales information, in addition to the U.S. joblessness declares number, offered a variety of favorable news for the marketplaces, said Naeem Aslam of Zaye Capital Markets.

Both standards fell more than 1% on Wednesday after U.S. unrefined stocks rose unexpectedly.

Previously, information showing U.S. customer prices rose moderately in July, reinforcing expectations the Federal Reserve will cut rate of interest next month, lent support to the marketplace.

Oil prices were likewise propped up by worries over Iran's. prospective reaction to the killing of the leader of the. Palestinian militant group Hamas last month. Three senior. Iranian officials have said that only a ceasefire deal in Gaza. would hold Iran back from direct retaliation against Israel for. the assassination.

Geopolitical risk continues to hang over the oil market. It. is still unclear how and if Iran will retaliate versus Israel,. ING analysts said.

But oil inventory gains raised issues of weaker need,. analysts at ANZ said in a customer note. U.S. petroleum stockpiles. increased by 1.4 million barrels in the week ended Aug. 9, compared. with price quotes for a 2.2 million barrel draw, constructing for the. first time given that late June.

China's factory output growth slowed in July while refinery. output succumbed to a fourth month, underscoring the country's. spotty economic recovery, likewise limiting the marketplace's benefit.

(source: Reuters)