Crude-oil futures advanced Monday along with broader markets, after stronger U.S. economic data and escalating protests in Egypt.
Light, sweet crude for August delivery settled $1.43, or 1.5%, higher, at $97.99 a barrel on the New York Mercantile Exchange. ICE North Sea Brent Crude Oil for August delivery settled 84 cents higher, at $103 a barrel.
Crude-oil futures rose along with equity markets after the Institute for Supply Management's manufacturing survey Monday beat economists' expectations. It showed an increase to 50.9 in June from a reading of 49 in May. Economists had expected the data to show an increase to 50 in June. A reading above 50 is defined as an expansion.
Traders turn to ISM data as a snapshot of economic growth in the U.S., the world's largest oil consumer. Stronger manufacturing growth typically indicates higher fuel demand from factories.
The Dow Jones Industrial Average was recently 0.5% higher, at 14,986.
Oil prices pushed higher "due to a wider market rally and what is happening in the Middle East," said Julius Walker, global energy markets strategist at UBS in New York.
Crude-oil futures were also boosted by rising protests in Egypt. The country's military said it would intervene to " resolve the crisis" if President Mohammed Morsi did not meet the protestors' demands in 48 hours.
Egyptians have been involved in mass demonstrations demanding the resignation of President Morsi. Instability in Egypt raises concerns about tensions spilling over to neighbors in the oil-rich Middle East region.
"Egypt is the bellwether country for a large part of the Middle East," Mr. Walker said.
Oil prices have been up 4.6% over the past seven trading sessions, but prices have moved little from a trading range of $93 a barrel to $98 a barrel since June. Traders' concerns have centered around geopolitical risks in the Middle East and the prospect of the Federal Reserve pulling back its stimulus program that has so far boosted the U.S. economy.
Meanwhile, the gap between the benchmark Nymex and Brent crude-oil contracts narrowed to its smallest amount since January 2011. Analysts attributed the move to the recent infrastructure improvements that have helped reduce supply bottlenecks at the key oil depot of Cushing, Okla., allowing oil to reach the Gulf Coast refining corridor.
"The message seems to be that the earlier pipeline problems are over," said Walter Zimmermann, vice president and chief technical analyst at United-ICAP.
Front-month August reformulated gasoline blendstock, or RBOB, settled 2.23 cents higher, at $ 2.7379 a gallon. August heating oil settled 1.48 cents higher, at $2.8736 a gallon.
