Oil rises near $106; pump prices jump to $3.55
NEW YORK (AP) — The price of oil rose to near $106 a barrel Friday. Gasoline prices jumped the most since mid-February, unwelcome news for summertime drivers.
Benchmark crude oil for August delivery gained $1.04 to $105.95 a barrel on the New York Mercantile Exchange. Even with a drop of $1.60 a barrel Thursday, the price of oil rose $2.73 this week and is up nearly 10 percent in July.
Drivers are seeing the impact. The average price for a gallon of gas in the U.S. rose 3 cents to $3.55 a gallon, the biggest one-day increase since Feb. 16, according to AAA. Prices rose 10 cents in both Indiana and Michigan.
The average price has gained 8 cents since Monday, reversing what had been a steady decline since the middle of June.
Fill-ups for summertime road trips could get even more expensive. Gasoline futures rose 10 cents, or 3.2 percent, Friday to $3.12 a gallon, and have risen about 37 cents in July.
"It would not be surprising to see the national average rise another 10-15 cents per gallon as the effects of higher futures and wholesale prices reach consumers at the pump," wrote AAA spokesman Michael Green in an email.
Oil has risen from around $97 on July 1, mainly for two reasons. Traders are concerned that unrest in Egypt could affect oil shipments through the Suez Canal, a key shipping lane. And U.S. supplies of oil and gasoline have dropped dramatically in the past two weeks, signaling a rise in demand in the world's largest economy.
Brent crude gained $1.08 to $108.81 on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
— Natural gas added 3 cents to $3.64 per 1,000 cubic feet.
— Heating oil advanced 3 cents to $3.03 a gallon.
Pablo Gorondi in Budapest contributed to this report.