Oil rises above $107 per barrel as US crude supplies fall in the first week of August
{{#rendered}} {{/rendered}}The price of oil rose above $107 per barrel Thursday after U.S. crude supplies fell in a possible sign of stronger demand.
Benchmark crude for September delivery was up 45 cents to $107.30 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 2 cents to close at $106.85 on Wednesday.
The latest supply reports showed a drop in U.S. crude inventories. The American Petroleum Institute said supplies dropped by nearly 1 million barrels to 365.3 million barrels for the week ending Aug. 9. The U.S. Energy Department said crude oil supplies fell by 2.8 million barrels, about double what analysts expected.
{{#rendered}} {{/rendered}}The dollar also fell against the yen and the euro, a move that supports oil prices. Crude, traded in dollars, becomes a more attractive investment for holders of other currencies when the dollar falls.
Brent crude, traded on the ICE Futures exchange in London, rose 41 cents to $109.23 a barrel.
In other energy futures trading on Nymex:
{{#rendered}} {{/rendered}}— Heating oil rose 0.8 cent at $3.056 a gallon.
— Wholesale gasoline rose 0.8 cent to $2.856 a gallon.
— Natural gas fell 0.8 cent to $3.335 per 1,000 cubic feet.