Oil Hovering Around $80 on GDP Report

New York, NY, Oct. 30, 2009–Oil prices hovered near $80 a barrel Friday in Asia after the U.S. economy snapped four straight quarters of contraction, suggesting demand for crude will improve.

Benchmark crude for December delivery was down 31 cents to $79.56 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.41 to settle at $79.87 on Thursday.

Oil is approaching its high for 2009 of $82 a barrel on evidence the U.S. economy, the world’s largest, is recovering.

The Commerce Department said the U.S. economy grew at a 3.5 percent annual pace in the third quarter, the best showing in two years and breaking four straight quarters of declines.