Oil rises near $106 on supply concerns
NEW YORK (AP) — The price of oil rose to near $106 a barrel Friday, supported by continuing tensions in Egypt and a sharp drop of U.S. crude stockpiles.
Benchmark crude oil for August delivery gained $1.04 to $105.95 a barrel on the New York Mercantile Exchange. Even with a drop of $1.60 a barrel Thursday, the price of oil rose $2.73 this week and is up nearly 10 percent in July.
Oil has risen from around $97 on July 1, mainly for two reasons. Traders are concerned that unrest in Egypt could affect oil shipments through the Suez Canal, a key shipping lane. And U.S. supplies of oil and gasoline have dropped dramatically in the past two weeks, signaling a rise in demand in the world’s largest economy.
Brent crude gained $1.08 to $108.81 on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
Gasoline futures rose 10 cents, or 3.2 percent, to $3.12 a gallon, and have risen about 37 cents in July. Natural gas added 3 cents to $3.64 per 1,000 cubic feet. Heating oil advanced 3 cents to $3.03 a gallon.
Pablo Gorondi in Budapest contributed to this report.