Oil reaches highest point in 14 months

By JONATHAN FAHEY Modified: July 3, 2013 at 7:59 pm •  Published: July 4, 2013
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The price of oil rose to its highest level in 14 months on concerns about possible disruptions to Middle East supplies and signs of an increase in U.S. demand for fuel.

U.S. benchmark oil gained $1.64 to $101.24, its highest close since May 3, 2012.

Brent crude, which is used to price oil used by many U.S. refineries to make gasoline, rose $1.76 to finish at $105.76.

Two events propelled the price of oil above $100 a barrel for the first time since the middle of September: unrest in Egypt, and a big drop in U.S. oil supplies.

Traders were worried that political upheaval in Egypt could slow the flow of oil from the Middle East to world markets. Embattled Egyptian President Mohammed Morsi vowed not to give in to protesters' demands for his resignation. But the head of Egypt's military announced late Wednesday local time that Morsi will be replaced and new elections will be held.

Egypt is not an oil producer but its control of one of the world's busiest shipping lanes gives it a crucial role in maintaining global energy supplies. The Middle East accounts for about a quarter of the world's crude oil output, or 23 million barrels per day. About 2 million barrels of that, or 2.2 percent of world demand, are transported daily through the Suez Canal, which links the Mediterranean with the Red Sea.



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