The price of oil neared $107 as traders looked ahead to the outcome of the Fed's meeting later Wednesday and as violence persisted in energy producer Iraq.
Benchmark U.S crude for July delivery gained 58 cents to $106.94 a barrel on the New York Mercantile Exchange by midafternoon in Asia. Brent crude, a benchmark used to price international oils, added 22 cents to $113.67 a barrel on the ICE Futures exchange in London.
Markets are waiting for the conclusion to the Federal Reserve's two-day policy meeting, when it will release its latest forecasts for the world's biggest economy that will also provide guidance on future energy demand.
The price of oil fell Tuesday as fears over the prospect of disruption to Iraq's crude supplies subsided a bit and traders awaited the latest report on U.S. supplies.
Benchmark U.S crude for July delivery dropped 54 cents to $106.36 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark used to price international oils, gained 51 cents to $113.45 a barrel on the ICE Futures exchange in London.
Renewed fighting in Iraq has had a limited impact on the country’s oil production and global crude prices thus far, but an analysis by The Wall Street Journal concludes that the situation will definitely affect the global market in the longer term.
The price of oil dropped Tuesday after the U.S. said it was deploying a small group of troops to Iraq, which helped soothe fears somewhat over the prospect of a broader conflict that could disrupt crude supplies.
Benchmark U.S crude for July delivery dropped 29 cents to $106.61 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost 1 cent to settle at $106.90 on Monday.
Brent crude, a benchmark used to price international oils, fell 33 cents to $112.61 a barrel on the ICE Futures exchange in London.
After a strong rally last week fuelled by fears over fighting in Iraq, prices for benchmark U.S. crude took a breather Monday, finishing down 1 cent to $106.90 a barrel. But the crisis in Iraq is continuing to push Brent up, with the contract for August delivery gaining 48 cents to $112.94 a barrel, Reuters reports.
The price of oil rose above $107 Monday as violence worsened in Iraq with reports of a massacre by Islamic militants, raising fears of widening instability in the country, a key energy producer.
The northern town of Tal Afar became the latest to fall to the militants, who have already captured a vast swath of territory including Iraq's second-largest city, Mosul. The militants, who on Sunday posted graphic photos of truckloads of Iraqi soldiers that they apparently captured and killed, vow to march on Baghdad.
After rising 4.1 percent last week, benchmark U.S. crude for July delivery rose 36 cents to $107.27 — the highest in nine months — in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, gained 63 cents to $113.09 a barrel in London.
Oil rose above $107 a barrel Friday as Iraq's widening insurgency raised the risk that plans to expand oil output from the No. 2 OPEC producer could be derailed.
Oil prices have risen to 10-month highs after an al-Qaida-inspired group vowed to march on Baghdad after capturing two key Iraqi cities this week, including Mosul, which is in an area that is a key gateway for the country's crude.
After rising as high as $107.68, the benchmark U.S. oil contract for July delivery was up 46 cents to $106.99 a barrel in electronic trading on the New York Mercantile Exchange by 0555 GMT. On Thursday, the contract jumped $2.13, or 2 percent, to $106.53. Brent crude, a benchmark for international oils, was up 70 cents to $113.12 a barrel on the ICE Futures exchange in London.
Ahead of reports on GDP, payrolls and gasoline stockpiles, U.S. benchmark crude for September delivery slipped 11 cents to $101.56 in electronic trading on the New York Mercantile Exchange, while Brent crude gained 22 cents to $107.79, Bloomberg reports.
The Environmental Protection Agency isn’t doing enough to monitor the effect fracking has on water contamination and seismic activity, and needs to update and step up enforcement efforts, the Government Accountability Office said in a report released Monday, according to the Los Angeles Times.
Two top Chinese officials who’d been prominent in the operations of China National Petroleum Corp. in Canada have departed, calling into question the future of a billion dollar oil sands project, The Wall Street Journal reports.
The Obama administration has turned to lasers -- used in the Light Detection and Ranging System, or LIDAR -- to create extremely accurate 3-D mapping, which the U.S. Geological Survey says has the potential to head off billions of dollars in flood damage as well as revolutionize planning for infrastructure, National Journal reports.
Weather satellite data are vulnerable to hacking because of security issues with National Oceanic and Atmospheric Administration information systems, according to E&E, which cites a report from the Inspector General at the Commerce Department.
Northwest Energy Innovations is to start testing a prototype in September in Oahu, of a device which will harvest up to 20 kilowatts from wave energy and add it to the grid, the first time that will have been done in the U.S., The Associated Press reports, citing a story in the Honolulu Star-Advertiser.