Oil Gains As China Manufacturing Improves
The price of oil rose Tuesday on expectations for stronger demand following an improvement in manufacturing activity in China, the world's biggest oil importer.
A rise in the value of the U.S. dollar added to upward pressure on the price, along with the continued turmoil in Iraq, OPEC's second-largest exporter.
Benchmark U.S. crude for August delivery was up 31 cents to $105.68 a barrel at 0515 GMT in electronic trading on the New York Mercantile Exchange. The contract had fallen four trading days in a row after closing at a 10-month high of $107.26 on June 20 and lost 37 cents on Monday.
Brent crude, a benchmark for international oils, climbed 27 cents to $112.63 a barrel in London.
Oil prices have risen in recent weeks on concerns that violence in Iraq, OPEC's second-largest exporter, would cut global 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 edged up 0.4 cents to $3.047 a gallon.
—Natural gas fell 2.1 cents to $4.44 per 1,000 cubic feet.
—Heating oil added 0.5 cent to $2.981 a gallon.