NEW YORK – The price of oil rose to near US$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 per cent 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, signalling 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.