Oil closes near $65 on earnings optimism

NEW YORK, July 21 (UPI) -- Oil closed near $65 a barrel Tuesday as better-than-expected earnings reports raised optimism that U.S. fuel consumption would rebound.

Even after U.S. Federal Reserve Chairman Ben Bernanke said the U.S. economy and financial markets were still too weak to raise interest rates, light, sweet crude for August delivery rose 74 cents, or 1.2 percent, to $64.72 a barrel on the New York Mercantile Exchange, the highest settlement since July 2.

The August contract expired at the close.

The more-active September contract increased 32 cents, or 0.5 percent, to end the session at $65.61 a barrel.

Natural gas for August delivery rose a penny to settle at $3.846 per 1,000 cubic feet.

August heating oil increased 0.9 cent, or 0.5 percent, to end the session at $1.6984 a gallon.

Reformulated gasoline blendstock climbed 2.26 cents, or 1.3 percent, at $1.812 a gallon in New York, the highest settlement since July 1.

AAA said the average U.S. retail price for regular unleaded gasoline was $2.458 a gallon, down 0.07 cents from Monday's $2.465 a gallon.