Oil Gains as Syria-Turkey Tensions Rise

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By The Associated Press, Associated Press

The price of oil rose Thursday after tensions rose between Syria and Turkey.

Oil rose to $89.31, a jump of $1.17, or 1.3 percent, in morning trading on the New York Mercantile Exchange.

Thursday's rise follows a steep decline of 4 percent on Wednesday.

[PHOTOS: Violence in Syria.]

The increase in prices came as Turkey's military fired on targets in Syria for the second day. Prices also got a boost from economic reports showing improvement in the U.S. services sector, and a modest gain in private sector hiring.

The price of gasoline at the pump rose two-tenths of a cent, to $3.784 for a gallon of regular, according to AAA. That's up 38 cents from a year ago.

Brent crude, which is used to price international varieties of oil, was up $1.44 to $109.61 in London.

In other energy futures trading in New York:

— Natural gas rose 0.2 cent to $3.41per 1,000 cubic feet. It had slightly larger gains earlier in the morning, but gave them up when a government report showed that more gas went into storage last week than analysts had expected.

— Heating oil advanced 4.2 cents to $3.108 per gallon.

— Wholesale gasoline rose 7.5 cents to $2.8740 per gallon.

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