Oil higher on Iran tensions
Friday, 11 July 2008
SINGAPORE, July 10 (AFP): Oil prices rose in Asian trade today, gaining support from Iran's test of a missile that could hit Israel, dealers said.
New York's main oil contract, light sweet crude for August delivery, rose 34 cents to 136.39 dollars a barrel after closing a penny higher at 136.05 Wednesday at the New York Mercantile Exchange.
Brent North Sea oil for August gained 41 cents to 136.99 after rising 15 cents to 136.58 Wednesday in London.
Prices have soared since breaking through 100 dollars at the start of the year, but are down about 10 dollars from record peaks near 147 dollars last week.
"I believe this market is not over yet," said Ken Hasegawa, manager of the energy desk at Newedge Japan brokerage in Tokyo.
He said the market was on the way to 150 dollars a barrel but should hold between 130 and 140 while tensions simmer in the Middle East.
"We have a serious matter about Iran and Israel. That should be the support of this market," Hasegawa said.
Iran, the world's fourth-largest crude producer, on Wednesday test- fired a missile it said is capable of reaching Israel, angering the United States amid growing fears that a standoff over Iran's nuclear drive could lead to war.
Iran insists its nuclear drive is aimed solely at generating energy but the West fears it could be aimed at making an atomic bomb and has called for a freeze of uranium enrichment.
On Tuesday, an aide to supreme leader Ayatollah Ali Khamenei warned that Iran would "set fire" to Israel and the US navy in the Gulf as its first response to any American attack.
US Secretary of State Condoleezza Rice responded on Thursday by saying the United States was prepared to defend its interests and allies.
Leaders of the Group of Eight major industrial nations pledged at a summit in Japan on Wednesday to improve transparency and the supply and demand balance in the oil market by boosting dialogue between producing and consuming nations.
The comments had little impact on the oil market, Hasegawa said.
The US Department of Energy, in its weekly report, said American crude reserves fell 5.9 million barrels in the week to July 4, beyond the expected drop of 2.1 million barrels.
New York's main oil contract, light sweet crude for August delivery, rose 34 cents to 136.39 dollars a barrel after closing a penny higher at 136.05 Wednesday at the New York Mercantile Exchange.
Brent North Sea oil for August gained 41 cents to 136.99 after rising 15 cents to 136.58 Wednesday in London.
Prices have soared since breaking through 100 dollars at the start of the year, but are down about 10 dollars from record peaks near 147 dollars last week.
"I believe this market is not over yet," said Ken Hasegawa, manager of the energy desk at Newedge Japan brokerage in Tokyo.
He said the market was on the way to 150 dollars a barrel but should hold between 130 and 140 while tensions simmer in the Middle East.
"We have a serious matter about Iran and Israel. That should be the support of this market," Hasegawa said.
Iran, the world's fourth-largest crude producer, on Wednesday test- fired a missile it said is capable of reaching Israel, angering the United States amid growing fears that a standoff over Iran's nuclear drive could lead to war.
Iran insists its nuclear drive is aimed solely at generating energy but the West fears it could be aimed at making an atomic bomb and has called for a freeze of uranium enrichment.
On Tuesday, an aide to supreme leader Ayatollah Ali Khamenei warned that Iran would "set fire" to Israel and the US navy in the Gulf as its first response to any American attack.
US Secretary of State Condoleezza Rice responded on Thursday by saying the United States was prepared to defend its interests and allies.
Leaders of the Group of Eight major industrial nations pledged at a summit in Japan on Wednesday to improve transparency and the supply and demand balance in the oil market by boosting dialogue between producing and consuming nations.
The comments had little impact on the oil market, Hasegawa said.
The US Department of Energy, in its weekly report, said American crude reserves fell 5.9 million barrels in the week to July 4, beyond the expected drop of 2.1 million barrels.