Oil prices close higher Thursday

NEW YORK, Aug. 7 (UPI) -- Crude oil prices wavered Thursday then settled $1.60 cents higher at $119.95 per barrel on the New York Mercantile Exchange.

With a background of waning U.S. demand, oil headed down as the dollar strengthened after European Central Bank President Jean-Claude Trichet warned "annual inflation rates are likely to remain well above levels consistent with price stability for a protracted period of time."

Heating oil prices also gained Thursday, up 0.0026 cent $3.2326 per gallon. Reformulated blendstock gasoline prices rose 0.0534 cents to $2.9989 per gallon. Natural gas prices fell 0.116 cents to $8.559 per million British thermal units.

The national average retail price of unleaded gasoline fell 0.013 cents to $3.849 per gallon Thursday, more than 25 cents below its July 17 record at $4.114 per gallon, the AAA Daily Fuel Gauge Report said.