Oil prices bounce back near $85 - FOX 8 WVUE New Orleans News, Weather, Sports

Oil prices bounce back near $85

Updated:

NEW YORK (AP) - The price of oil is climbing following reports of strong auto sales in China and a surprisingly large drop in U.S. crude supplies.

Benchmark U.S. crude rose 99 cents to $84.91 per barrel Wednesday in New York while Brent crude increased by 96 cents to $98.93 per barrel in London.

Prices began to rise early in the day after China's auto industry said sales jumped 9 percent in June despite a slowing economy. China is the world's biggest market for new vehicles.

In the U.S., the government said oil supplies fell last week by 4.7 million barrels - triple the decline expected by analysts, which is signaling some scarcity.

U.S. retail gasoline prices are flat at $3.83 per gallon.

(Copyright 2012 The Associated Press. All rights reserved.)

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