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Crude gains on Egypt unrest, dollar's decline

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Investing.com - Crude prices edged higher on Monday after investors sold a strong dollar, the product of an improving U.S. labor market, for profits.

A weaker greenback makes oil an attractively priced commodity in dollar-denominated exchanges, especially in the eyes of investors holding other currencies.

On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded up 0.11% at USD103.33 a barrel on Monday, off from a session high of USD103.98 and up from an earlier session low of USD102.14.

The Bureau of Labor Statistics reported on Friday the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.

The jobs numbers initially pushed the dollar high by stoking sentiments the Federal Reserve will taper stimulus measures later this year, though by Monday, the dollar fell amid profit-taking, which gave oil room to rise.

Escalating clashes in Egypt also bolstered crude prices.

Violent clashes between supporters and opponents of ousted President Mohamed Morsi left more than 40 people dead over the weekend, according to various reports, which spooked investors with fears that unrest could lead to the closure of the Suez Canal, which transports roughly 2 million barrels of crude oil a day from the Middle East to the U.S.

On the ICE Futures Exchange, Brent oil futures for August delivery were down 0.16% at USD107.55 a barrel, up USD4.22 from its U.S. counterpart.

Investors kept an eye out for Chinese inflation data due out later this week, which could give the commodity a fresh weather vane.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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