Oil jumped more than 3 percent to top $71 a barrel on Tuesday after data showing gains in US retail sales and producer prices outweighed concerns about growing US distillate inventories. US retail sales rose at the fastest pace in 3-1/2 years in August and New York State manufacturing activity hit a near two-year high, data showed, more signs that economic activity was improving. A separate report showed prices received by US producers rose faster than expected last month. US crude for October delivery rose $2.24 to $71.10 a barrel by 1:59 P.M. EDT (1746 GMT). October Brent - which was pressured ahead of the contract's expiration Tuesday - fell 19 cents to $67.25 a barrel. Traders have been looking to equities markets and wider economic data for signs of a turnaround that could bolster flagging oil demand. Further support came after Federal Reserve Chairman Ben Bernanke said the worst US recession since the Great Depression was probably over, but the recovery would be slow and it would take time to create new jobs. Gasoline stocks were seen up by 800,000 barrels, while crude stocks were seen down by 2.7 million barrels. World oil demand will decline slightly in 2009 but start growing again next year.
