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Oil fluctuates as traders eye Iraq, US output

  • Article by: The Associated Press
  • Associated Press
  • June 25, 2014 - 7:25 AM

The price of crude oil fluctuated on Wednesday as investors monitored the turmoil in Iraq and weighed a report claiming U.S. export controls would be loosened.

Benchmark U.S. crude for August delivery rose 38 cents to $106.41 per barrel on the New York Mercantile Exchange. The contract dropped 14 cents to settle on Tuesday. Brent crude, used to price international oils, dropped 65 cents to $113.80 a barrel in London.

The U.S. benchmark crude futures rose after The Wall Street Journal reported that the U.S. government was loosening a longstanding ban by letting two companies sell American oil internationally. The newspaper said the Obama administration would allow foreign buyers to purchase a type of ultralight oil known as condensate, which can be turned into gasoline, jet fuel and diesel.

International crude fell further from a nine-month high reached earlier this week after the head of OPEC , the group of major oil exporters, said that Iraq's production was normal, with 95 percent of capacity in the south unaffected by the violence, which has been concentrated in the country's north.

In other energy futures trading on the Nymex:

— Wholesale gasoline fell 2.3 cents to $3.07 a gallon.

— Natural gas rose 1 cent to $4.57 per 1,000 cubic feet.

— Heating oil fell 1.4 cents to $3.03 a gallon.

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