Oil rises on OPEC outlook, rallying stocks

August 9, 2011 - 9:29 AM

NEW YORK (AP) — Oil is rising after OPEC said global demand for oil will continue to grow this year, despite the weak economic recoveries in the U.S. and Europe.

Benchmark crude gained $1.07 at $82.36 a barrel in morning trading on the New York Mercantile Exchange.

In its monthly outlook for oil demand, OPEC said global demand for oil will continue to rise this year, but at a slower pace than it previously thought. OPEC said China and other booming economies will consume more oil, even if demand falls in sluggish U.S. and European economies.

Oil followed stocks higher as well. The major averages were up about 2 percent.

Gas pump prices dropped about a penny on Tuesday, to a national average of $3.65 for a gallon of regular.