Oil Extends Gains to Remain Over $107 a Barrel
By Pamela Sampson, AP Business Writer
BANGKOK (AP) -- The price of oil rose Friday, boosted by fears of a potential supply disruption as violence in Egypt continues to spiral.
Benchmark crude for September delivery rose 12 cents to $107.45 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 48 cents to close at $107.33 per barrel on Thursday.
Brent crude, a benchmark used to price imported crude purchased by many U.S. refineries, rose 5 cents to $109.77 per barrel.The ouster in early July of Egypt's President Mohammed Morsi has helped lift crude prices, reflecting the risk of a supply disruption from the country that controls the Suez Canal. Violence erupted Wednesday as clashes between police and Morsi's supporters killed more than 600 people. Egypt is not a major oil exporter, but traders worry that the violence could spill over to more important oil-exporting countries or disrupt major oil transport routes that cross Egypt. Carl Larry of Oil Outlooks and Opinions said in an email commentary that "the timing with the Middle East issues are terrible" and added that "the Suez Canal is not the main passageway for oil, but it is a life line for a lot of Middle Eastern countries to ply their trade and keep their economies from collapsing." Oil passed $100 per barrel in early July for the first time since September as Morsi was being ousted. It reached a high for the year of $108.15 on July 19 as Libyan output fell due to strikes at oil facilities. In other energy futures trading on Nymex: -- Heating oil fell marginally to $3.0793 a gallon. -- Wholesale gasoline rose 0.4 cents to $2.8584 a gallon. -- Natural gas rose 0.6 cent to $3.425 per 1,000 cubic feet.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV