Crude oil rises on Gaza conflict
Oil rose on speculation that the conflict between Israel and the Palestinians of Gaza will disrupt crude supply from the Middle East. Prices advanced earlier after a report showed US stockpiles declined.
Futures climbed as much as 0.8 percent after Egyptian plans to announce a cease-fire in Gaza fell through yesterday following a weeklong barrage of Palestinian rockets and Israeli airstrikes. The American Petroleum Institute said yesterday crude inventories fell for the second week in three. An Energy Department report today is forecast to show supplies increased.
"Until we get some further news from the Palestine-Israel situation, traders will probably trade from the long side," Ole Hansen, senior manager of trading advisory at Saxo Bank A/S, said by phone from Copenhagen today.