Oil prices hovered below $81 in Asia

Oil prices hovered below $81 a barrel Friday in Asia, gaining back a little of the previous day''s big loss amid the prospect of weaker demand for crude as the global economy slows. Benchmark oil for November delivery was up 16 cents to $80.67 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude plunged $5.41, or 6.3%, to settle at $80.51 on Thursday. In London, Brent crude for November delivery was up 19 cents at $105.68 on the ICE Futures exchange. Crude has dropped 10% from above $90 last week as investors fret Europe''s debt crisis and a weak U.S. economy will stymie oil demand. The worsening global outlook has pounded stock markets, which oil traders look to as a gauge of overall investor sentiment. The Dow Jones industrial average sank 3.5 % Thursday and most Asian stock markets fell Friday. A stronger U.S. dollar, which makes crude more expensive for investors with other currencies, has also boosted oil prices. Signs of weakening industrial production in China this week have analysts predicting that Asian demand for commodities could be slowing. In other Nymex trading for November contracts, heating oil was steady at $2.85 per gallon and gasoline futures rose 1.7 cents to $2.56 per gallon. Natural gas for October delivery added 2.0 cents to $3.72 per 1,000 cubic feet.(