Oil prices up at $46.58

Oil prices rose on Tuesday on cheery economic data showing that inflationary pressure was held in check in July and ahead of weekly inventory due out on Wednesday forecast to show a draw in crude stocks

US Light crude oil for September rose 53 cents to $46.58 a barrel and London Brent rose 15 cents to $42.84 a barrel. US prices had set new all-time highs in all but one of the previous 12 trading sessions, peaking on Monday at $46.91. Prices rose after US government showed consumer prices dropped in July for the first time in 8 months in a report showing underlying inflation pressures largely in check. Phil Flynn, analyst at Alaron Trading said: ‘‘Concerns that high oil prices will drive inflation higher were overblown’’. The US Energy Information Administration inventory data, for the week ended August 13, is due to be out. (Reuters)