U.S. oil rise to the highest level in 14 months, after falling stocks

Prices jumped oil futures on both sides of the Atlantic on Wednesday, U.S. crude jumped to the highest level in 14 months near $ 105 a barrel after a larger-than-expected drop in U.S. inventories of crude.

But the gains have been limited because of concerns about the slowdown in the Chinese economy which was confirmed by the gloomy trade data for the month of June, and the price of U.S. light, sweet crude futures for August delivery 93 cents to $ 104.46 a barrel after hitting the highest level in 14 months at $ 104.79.

And Brent crude rose eight cents to 107.89 dollars a barrel, down from $ 108.12 after data fueled fears of Chinese demand in the second largest consumer of crude in the world.

Said Tony Nunan, risk manager at Mitsubishi Corp. "spotlight on China for a while, but it seems that the United States is now the main engine on both sides of the ups and downs."

And shrinking the difference between the U.S. and Brent crude 85 cents to 3.43 dollars thanks to gains after a decline in U.S. crude inventories.

The Petroleum Institute report showed that U.S. crude inventories fell about nine million barrels last week, compared with analysts' expectations of a drop of 3.3 million barrels. It is scheduled to Energy Information Administration issued its report on stocks later in the day.