Oil lingers near $65 as US crude supplies rise

SINGAPORE – Oil prices lingered near $65 a barrel Wednesday in Asia as rising U.S. crude inventories suggested consumer demand remains sluggish in the world's biggest economy.

Benchmark crude for September delivery was down 51 cents to $65.07 a barrel by afternoon Singapore time in electronic trading on the New York Mercantile Exchange. On Tuesday, the August contract expired, rising 74 cents to settle at $64.72.

U.S. crude inventories rose 3.1 million barrels last week while gasoline supplies gained 1.3 million, the American Petroleum Institute said late Tuesday. Analysts expected the API numbers to fall 2.0 million barrels, according to a survey by Platts, the energy information arm ofMcGraw-Hill Cos.

Investors will be watching for inventory data from the Energy Department's Energy Information Administration on Wednesday for more signs crude demand may be waning.