Oil, gasoline end higher as bargain hunters step in

(MarketWatch) -- Crude-oil futures ended Wednesday in positive territory, despite a surprise increase in inventories and weak economic data that offered little hope for a surge in demand.

Crude for October delivery rose 89 cents, or 1.2%, to settle at $72.52 a barrel on the New York Mercantile Exchange, after setting an 11-week low on Tuesday. Earlier in the session, oil had posted an intraday low of $70.69 a barrel.

Gasoline for September delivery also turned as the session progressed, adding a penny, or 0.8%, to end at $1.86 a gallon, after hitting an eight-month low on Tuesday.

"We're seeing some buying interest right now," especially because the inventories report failed to send oil futures much lower than their opening price, said Matt Smith, an analyst with Summit Energy in Louisville, Ky.

"There was no huge negative reaction" to the weekly data, which gave oil some measure of strength, he added.

Natural gas, however, bucked the positive trend and maintained its losses, with the September contract retreating 17 cents, or 4.2%, to $3.87 per million British thermal units. That's the lowest price since late March and the first time it traded below $4 since early May. (more)