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Oil prices hover around 70 dollars
AFP
NEW YORK
Petroleumworld.com 06 24 06
World crude prices hovered around 70 dollars a barrel on Friday, supported by strong demand and lingering geopolitical tensions in the oil-rich Middle East, dealers said.
New York's main contract, light sweet crude for delivery in August, rose three cents to close at 70.87 dollars a barrel.
In London, Brent North Sea crude for August delivery fell three cents to 69.98 dollars per barrel.
"Oil prices are coming back for more," said Phil Flynn of Alaron Research.
"Another strong close that ignored a slightly neutral natural gas report and rising interest rate anxiety in favor of focusing on building demand," he said.
The US Department of Energy said Wednesday that American demand for gasoline, or petrol, has been running 0.9 percent higher during the past four weeks compared with the same period a year ago.
Barclays Capital analyst Kevin Norrish pointed out that US gasoline demand surged at 9.41 million barrels per day last week, close to a record high of 9.54 million barrels per day in August 2005.
The figures show higher US gasoline prices are having little impact on demand as the summer holiday driving season kicks into gear.
Elsewhere, oil market participants kept one eye on Iran, the world's fourth-largest crude producer, amid a nuclear energy crisis.
Iran said Friday that suspending uranium enrichment will be neither a pre-condition for talks with world powers on its suspect nuclear activities nor an outcome of those discussions.
"Iran considers that suspension is neither a pre-condition to nor the result of negotiations," Javad Vaidi, deputy secretary of Iran's Supreme National Security Council, told AFP.
The five permanent UN Security Council members -- Britain, China, France, Russia and the United States -- plus Germany have offered Iran a package of incentives if it agrees to temporarily halt uranium enrichment.
Analysts argue that any move to impose sanctions on Iran would cause the nation to cut its crude exports.
"The (exchange) of rhetoric between both sides will continue to keep the oil market on the edge," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
The major powers and Iran are locked in a dispute over Tehran's nuclear programme, which Washington suspects is a cover to acquire nuclear weapons. Iran contends that its nuclear activities are strictly for civilian purposes.
AFP 23 2038 GMT 06 06
Copyright ©2006 AFP. All Rights Reserved.
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