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US oil reverses losses to end near $107

A derrick hand for Raven Drilling, works on an oil rig drilling into the Bakken shale formation outside Watford City, N.D.
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A derrick hand for Raven Drilling, works on an oil rig drilling into the Bakken shale formation outside Watford City, N.D.

Crude prices rose on Wednesday, staging a late day rally amid concerns over Middle East supply disruptions and a reduction in U.S. oil stockpiles, which provided support.

New headlines from Egypt's political turmoil reminded investors of the potential for supply disruptions as violence continued across the country and the government imposed a state of emergency. Dozens were killed in clashes between riot police and supporters of ousted President Mohamed Morsi.

Interim vice president Mohamed ElBaradei resigned from his post after the clashes, which killed 149 people, according to the Egyptian health ministry.

In Libya, deputy oil minister said on Wednesday that production had fallen to 600,000 barrels a day due to field problems while Ras Lanuf terminal remained shut. Meanwhile, maintenance at Iraq's southern oil export hub is also set to slash supplies by 500,000 barrels per day in September.

U.S. oil settled 2 cents higher at $106.85. Brent popped to a new 4-month high, adding more than 30 cents to trade above $110 a barrel,

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