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Oil falls near $107 a barrel

West Texas Intermediate, the benchmark for U.S. crude, for September delivery fell 36 cents to close at $107.10 a barrel on the New York Mercantile Exchange. The contract rose $4.06, or 4 percent, over the prior six trading sessions.

The Associated Press

8/19/2013

NEW YORK — The price of oil fell for the first time in more than a week Monday, slipping near $107 a barrel.

West Texas Intermediate, the benchmark for U.S. crude, for September delivery fell 36 cents to close at $107.10 a barrel on the New York Mercantile Exchange. The contract rose $4.06, or 4 percent, over the prior six trading sessions.

Brent North Sea crude, the benchmark for international crudes, fell 50 cents to $109.90 a barrel for October delivery on the ICE Futures exchange in London.

The situation in Egypt has supported higher oil prices. The country has been wracked by ongoing clashes between supporters of ousted President Mohammed Morsi and the military-backed government. Nearly 900 people have died in the violence so far.

Egypt is not a major oil exporter, but there is concern that an escalation in fighting could spread to neighboring countries or disrupt the Suez Canal, a major trade route.

Traders are also waiting for clear signals from the U.S. Federal Reserve on monetary policy. It is widely held that the Fed will begin to reduce its $85 billion a month in asset purchases as early as September.

The Fed's stimulus policy has lowered interest rates and made oil and other commodities a more attractive investment by offering potentially higher returns.

In other energy futures trading on the Nymex:

— Heating oil fell 1 cent to $3.07 per gallon.

— Wholesale gasoline fell 3 cents to $2.93 a gallon.

— Natural gas rose 10 cents to $3.46 per 1,000 cubic feet.

Pamela Sampson in Bangkok and Pablo Gorondi in Budapest contributed to this report.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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