Oil prices rise on stronger retail sales report

Oil prices edged up today, on signs that the economy may lift demand for energy.

Retail sales improved slightly in July and business inventories gained. But consumer sentiment fell to its lowest level in more than 30 years.

The reports left traders in the same spot they were in when the week began — guessing about future demand potential for everything from gasoline to heating oil.

Benchmark West Texas Intermediate crude rose 38 cents to $86.10 a barrel in midday trading on the New York Mercantile Exchange. In London, Brent crude rose 1 cent to $108.03 a barrel on the ICE Futures Exchange.

Oil prices have bounced from a low of $79.30 to a little more than $86 a barrel this week as investors remain concerned about global economic growth, ongoing financial problems in Europe and signs of a slower economy in China, a huge importer of oil and other commodities.