NEW YORK – The price of oil fluctuated above $106 a barrel Monday as traders pondered disappointing US orders for durable goods and how they would affect the US Federal Reserve's plans about winding down its economic stimulus. By early afternoon in Europe, benchmark oil for October delivery was down 7 cents to $106.35 a barrel in electronic trading on the New York Mercantile Exchange. Earlier in the session, it swung between $106.06 and $107.37. The contract gained $1.39, or 1.4 percent, to close at $106.42 on Friday. Oil rose after the US government said that Americans cut back sharply in July on purchases of new homes, a sign that higher mortgage rates may weigh on the housing recovery. Brent crude, which sets prices for imported oil used by many US refineries, was down 36 cents to $110.68 a barrel on the ICE Futures exchange in London. The ongoing conflicts in the Middle East — especially in Syria and Egypt — continued to prevent prices from falling further, although analysts said gains would also be limited. There are signs that the United States could be closer to an armed response against the regime of Syrian President Bashar Assad if claims are confirmed that his forces used chemical weapons. — AP
