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Oil rises on US, China factory strength

July 2, 2014 7:04 AM
The Canadian Press

The price of oil edged up Wednesday on stronger manufacturing activity in the United States and China, the two biggest oil consumers.

Benchmark U.S. crude for August delivery was up 8 cents to $105.42 per barrel at 0800 GMT in electronic trading on the New York Mercantile Exchange, breaking four days of declines. The contract closed at a 10-month high of $107.26 on June 20.

Brent crude, a benchmark for international oils, fell 13 cents to $112.16 per barrel in London.

Manufacturing activity in China, the world’s biggest oil importer, grew in June, according to surveys by HSBC Corp. and a Chinese industry group.

In the United States, manufacturing grew for a 13th successive month, though at a slower pace than in May.

Oil prices have risen in recent weeks on concerns that violence in Iraq, OPEC’s second-largest exporter, would cut supplies. They stabilized late last week as the stunning initial advance by insurgents lost momentum.

In other energy futures trading on the Nymex:

– Wholesale gasoline rose 0.2 cent to $3.0381 a gallon.

– Natural gas fell 0.8 cent to $4.447 per 1,000 cubic feet.

– Heating oil dropped 0.2 cents to $2.976 a gallon.

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