Oil prices advance on bargain hunting

LONDON: World oil prices rose on Monday as traders snapped up cheap crude after the market had slumped last week, analysts said.

New York's main contract, light sweet crude for August delivery, gained 27 cents to 72.41 dollars.

Brent North Sea crude, also for August delivery, climbed 44 cents to 72.09 dollars in morning deals.

Traders invested in cheap crude following last week's plunge in prices, said Serene Lim, a Singapore-based oil and gas analyst with Australia's ANZ bank.

"I think because oil prices have already been falling so much, there would be a rebound as longer-term investors buy into the market," she said.

She added that the rise was also "due to a consolidation of oil prices at 72 to 73 dollars".

Oil prices slumped more than eight percent last week as weak economic data out of the United States sparked fears about the strength of the global recovery.

The US economy shed 125,000 jobs in June, official data showed. Most analysts had expected a loss of 100,000 jobs.