Oil rises after Israel-Hamas truce is announced

Friday, November 16, 2012, Vol. 36, No. 46
The Associated Press

NEW YORK (AP) — The price of oil rose Wednesday afternoon following the announcement of a cease-fire agreement to end a week of fighting between Israel and Hamas militants.

Benchmark oil rose 33 cents to $87.08 a barrel. It climbed as high as $87.89 in the morning. Oil fell nearly 3 percent Tuesday.

The truce was announced by Egypt's foreign minister and confirmed by Israeli Prime Minister Benjamin Netanyahu. The deal is to end a week of fighting that has killed more than 140 Palestinians and five Israelis.

Brent crude, used to price international varieties of oil, rose 40 cents to $110.23 a barrel in London.

Meanwhile, gas pump prices in the U.S. moved higher as Americans began traveling for Thanksgiving. The national average is $3.43 a gallon.

In other energy futures trading in New York:

— Heating oil gained 2 cents to $3.07 a gallon.

— Wholesale gasoline rose 2 cents to $2.73 a gallon.

— Natural gas gained 6 cents to $3.89 per 1,000 cubic feet.