Oil rises as debt talks continue in US, Europe

July 20, 2011 - 11:43 AM

Oil prices are climbing as talks continue to resolve debt issues in the U.S. and Europe.

Benchmark crude for September delivery rose 75 cents to $98.61 a barrel on the New York Mercantile Exchange. Brent crude added $1.01 at $118.07 per barrel on the ICE Futures exchange.

U.S. congressional leaders are working on a plan to raise the nation's debt limit before an Aug. 2 deadline. In Europe, leaders of France and Germany will meet later Wednesday in an effort to reach agreement on a financial bailout package for Greece.

Investors are concerned that the debt issues could cause more problems for the global economy and weaken demand for oil.

At the pump, retail gas rose about half a cent Wednesday to a national average of $3.684 a gallon.