Oil prices rise to seven-month high

CRUDE oil prices rose after U.S. crude inventories dropped the most in seven months and on speculation central banks will take steps to support the economic recovery.Crude oil for September delivery rose $1.19, or 1.2 per cent, to $89.25 a barrel at 1:38 p.m. on the New York Mercantile Exchange. Futures traded at $88.63 a barrel before release of the inventory report at 10:30 a.m. in Washington. Prices gained 3.6 per cent last month and are down 9.7 per cent this year.Brent oil for September settlement increased $1.80, or 1.7 per cent, to $106.72 a barrel on the London-based ICE Futures Europe exchange.Futures rose as much as 1.6 per cent after the U.S. Energy Department said stockpiles decreased 6.52 million barrels last week.
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