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Oil edges up toward $104 ahead of U.S. data, holiday

By early afternoon in Europe, benchmark U.S. crude for July delivery was up 22 cents to $103.96 a barrel in electronic trading on the New York Mercantile Exchange.

By PABLO GORONDI
The Associated Press

5/23/2014

Oil prices moved up to around $104 a barrel Friday ahead of U.S. home sales data and the Memorial Day holiday weekend.

By early afternoon in Europe, benchmark U.S. crude for July delivery was up 22 cents to $103.96 a barrel in electronic trading on the New York Mercantile Exchange. On Nymex, the contract fell 33 cents to close at $103.74.

Brent crude, a benchmark for international oils, added 16 cents to $110.52 on the ICE Futures exchange in London.

Traders are waiting for a U.S. Commerce Department report on sales of new homes in April, expected later Friday, which may show a healthy American economy. That could help lift energy prices.

Oil reached a one-month high Wednesday of $104.07 a barrel after a U.S. Energy Information Administration report showed that U.S. crude supplies dropped a bigger-than-expected 7.2 million barrels in the week ended May 16.

"It seems that oil demand has picked up recently as crude oil stocks started to decline after reaching record high levels in previous weeks," said Myrto Sokou of Sucden Financial Research in London. "The recent solid U.S. economic figures could verify this uptrend in the U.S. economy."

Meanwhile, tensions are continuing in Ukraine, where on Thursday the deadliest raid yet on government troops by pro-Russia insurgents killed 16 soldiers. The possibility of greater Western sanctions against Russia for its role in the crisis has underpinned oil prices.

On Friday, nevertheless, President Vladimir Putin said Russia would respect the outcome of Sunday's presidential elections in Ukraine.

Holidays will keep markets closed on Monday in the U.S. and Britain.

In other energy futures trading in New York.

— Wholesale gasoline was little changed at $2.9885 a gallon.

— Natural gas rose 1.9 cents to $4.378 per 1,000 cubic feet.

— Heating oil inched up 0.61 cent to $2.9562 a gallon.

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