Oil price above $90 on Iran fears

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LONDON, Dec 06 (Internet): Oil prices are back above $90, as the US government seeks to sustain pressure on Iran over its nuclear plans.
A barrel of New York light crude was up five cents at $90.28, while in London, Brent crude up 15 cents at $90.33.
Prices have also been buoyed by President Bush's announcement of a mortgage-aid plan and oil cartel Opec's decision not to increase output.
Oil prices had fallen back in recent days, following a report that downplayed Iran's nuclear ambitions.
Energy traders fear that a conflict between Iran, and the US and its allies could hurt oil supplies from the Middle East.
A recent US report by the National Intelligence Estimate said Iran had halted its nuclear weapons programme in 2003, contradicting the US administration's previous view.
That sent oil prices lower, easing concerns that one barrel may soon cost $100.
But Thursday, secretary of state Condoleeza Rice urged Europe and Russia to increase pressure on Iran to stop uranium enrichment, indicating that the latest intelligence report has not changed the administration's stance.
The announcement late on Thursday of an aid plan for many US mortgage holders also supported oil prices.
It helped sooth fears that the crisis in the mortgage sector would feed into the wider economy and reduce demand for oil.
This week's decision by Opec to sustain output at current levels - combined with falling US inventories - had set the stage for oil prices to rise again, some analysts said.
"It is also probable that the increase in oil prices reflected a delayed adjustment to the previous day's news that Opec had decided to leave oil production unchanged and that US crude oil inventories had fallen heavily," said David Moore at Commonwealth Bank of Australia.
Opec will next meet on February 1 to review its decision.