Oil nears $102 on report of Suez Canal disruptions

Oil futures advanced toward $102 Friday after reports circulated that Egypt had closed off its borders with the Gaza Strip and announced a state of emergency in the Suez and Sinai provinces.

The Suez Canal, an important thoroughfare for oil traffic, is still operating normally, Reuters reported, citing unnamed sources. An Egyptian state-owned newspaper first reported that the border was being shut down due to security threats.

Crude for August delivery  gained 68 cents, or 0.7%, to $101.95 a barrel from Wednesday’s settlement on the New York Mercantile Exchange, which was closed Thursday for the Independence Day holiday.

Nymex oil briefly topped $102, before returning to earlier gains after the Labor Department said the U.S. economy added 195,000 jobs in June, far exceeding forecasts for gains of 155,000. April and May jobs growth was revised up. U.S. stock futures and benchmark government bond yields jumped after the report.

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