nvesting.com - Crude oil futures edged higher to trade near a two-week high on Thursday, as escalating violence in Egypt fuelled concerns over a disruption to supplies from the Middle East. Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2012. Oil traders also looked ahead to the release of a series of U.S. economic data later in the trading day amid ongoing uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases. Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD107.24 a barrel during European morning trade, up 0.35%. Nymex oil futures traded in a range between USD106.93 a barrel, the daily low and a session high of USD107.38 a barrel, the strongest level since August 5. The September contract ended Wednesday's session little changed at USD106.85 a barrel after a report from the U.S. government showed that oil supplies fell more-than-expected last week. Oil futures were likely to find support at USD105.06 a barrel, the low from August 12 and near-term resistance at USD107.68 a barrel, the high from August 5. Oil prices were boosted after Egypt declared a month-long national state of emergency on Wednesday. Egyptian media reported that nearly 300 people died and at least 2,000 were injured across the country as police forces cracked down on Muslim Brotherhood protesters. Tension between the government and supporters of former President Mohammed Morsi has been running high ever since Morsi was ousted from power in July in what various media outlets reported as a military coup. Market players also looked ahead to U.S. data on consumer inflation, jobless claims and industrial production, as well as reports on manufacturing activity in New York and Philadelphia to gauge the strength of oil demand from the world's largest consumer. Oil prices were boosted on Wednesday after a report from the U.S. government showed that oil supplies fell more-than-expected last week. The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 2.8 million barrels last week, compared to expectations for a decline of 1.5 million barrels. The U.S. is the world's biggest oil consuming country, responsible for almost 22% of global oil demand. Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery advanced 0.55% to trade at USD110.82 a barrel, with the spread between the Brent and crude contracts standing at USD3.58 a barrel. The September contract rose to a session high of USD110.99 a barrel earlier in the day, the strongest level since April 2.

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