Oil prices bounce back near $85

NEW YORK (AP) — The price of oil is climbing after reports of strong auto sales in China and a surprisingly large drop in U.S. crude supplies.

Benchmark U.S. crude rose 99 cents to $84.91 per barrel today in New York while Brent crude increased by 96 cents to $98.93 per barrel in London.

Prices began to rise early in the day after China's auto industry said sales jumped 9 percent in June despite a slowing economy. China is the world's biggest market for new vehicles.

In the U.S., the government said oil supplies fell last week by 4.7 million barrels — triple the decline expected by analysts, which is signaling some scarcity.

U.S. retail gasoline prices are flat at $3.83 per gallon.