Oil extends gains above $107 amid Egypt turmoil
BANGKOK — The price of oil rose Monday as the political turmoil in Egypt dragged on.
Benchmark oil for September delivery was up 14 cents to $107.60 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 13 cents to close at $107.46 on Friday. That was the sixth straight day of gains, attributed to the continuing violence in Egypt.
The country has been wracked by ongoing clashes between supporters of ousted President Mohammed Morsi and the military-backed government. Nearly 900 people have died in the violence so far.
Egypt is not a major oil exporter, but there is concern that an escalation in fighting could spread to neighboring countries or disrupt the Suez Canal, a major trade route.
Carl Larry of Oil Outlooks and Opinions said that while he doesn’t believe the Suez will close, “this means nothing to the companies that are going to increase insurance for shipping through the Canal. That in turn increases the costs and that eventually gets passed on to your friendly neighborhood oil consumer.”
Brent crude, which is used to price imported crude used by many U.S. refineries, rose 6 cents to $110.46 per barrel for October delivery.
In other energy futures trading:
— Heating oil rose was up 0.2 cent at $3.092 per gallon.
— Wholesale gasoline rose 1 cent to $2.856 a gallon.
— Natural gas rose 5.6 cents to $3.424 per 1,000 cubic feet.