The price of oil stayed near $106 a barrel Tuesday as energy markets waited for the next United States report on crude and fuel inventories for confirmation of recent signs of increased demand, The Associated Press reported on Tuesday.
Benchmark crude for August delivery was down 35 cents at $105.97 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract gained 37 cents to settle at $106.32 on Monday.
Oil is up about 10 per cent so far this month. It has been jolted higher by unexpectedly sharp drops in US crude and gasoline inventories, which suggest stronger demand.
The military ouster in early July of Egypt's president has also added a premium to crude, reflecting the risk of supply disruption from political instability in a country that controls the Suez Canal.
Those factors were tempered Monday by a second straight quarter of slowing economic growth in China and slower growth in US retail sales in June.
China's economy expanded 7.5 per cent in the April-June quarter after 7.7 per cent growth in the previous quarter.
Wednesday's report from the Energy Information Administration on US crude and fuel inventories might show a third consecutive weekly drop in supplies.
That would bolster the case of those traders and analysts who believe the oil price will rise further because US energy demand is rising in step with faster hiring.
