World
 
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Oil prices climb on Caribbean weather, Iran fears
AFP
NEW YORK
Petroleumworld.com 08 26 06
World oil prices rose slightly Friday as a tropical depression roiled across the Caribbean, and as edgy traders continued to follow diplomatic moves over Iran's nuclear program, analysts said.
New York's main contract, light sweet crude for delivery in October, closed up 15 cents at 72.51 dollars per barrel.
In London, Brent North Sea crude for October delivery settled up two cents at 72.70 dollars per barrel.
Fears that a tropical depression, currently projected to swirl closer to Jamaica over the weekend, could develop into a tropical storm helped support prices.
Almost 12 months ago, Hurricane Katrina slammed into the US Gulf coast after taking out oil platforms in the Gulf of Mexico, sending crude prices to then record highs.
"Tropical Depression Five seems set to become Tropical Storm Ernesto by the end of today (Friday)," said Bill O'Grady, an analyst at AG Edwards.
"The track forecast depends on the storm's organization over the next 12-24 hours and its forward movement," O'Grady said.
Other traders, however, voiced less concern over the brewing depression.
"There are still some fears about the storm but it's still too far to really worry, and it could pass south of the Gulf of Mexico, far from the infrastructures," said Mike Fitzpatrick, an analyst at Fimat USA.
The Miami-based National Hurricane Center said the depression was heading west across the Caribbean, and cautioned that officials in Jamaica and the Cayman Islands should monitor its progress over the weekend.
The depression was earlier Friday located about 340 miles (545 kilometers) south of San Juan, Puerto Rico, and about 760 miles (1,220 kilometers) east-southeast of Kingston, Jamaica.
Traders also continued to focus on Iran, the world's fourth biggest producer of crude.
In line with a UN Security Council resolution, the United States and its European allies are insisting that Iran stop enriching uranium by August 31 or face the threat of sanctions.
Some analysts believe sanctions could provoke Iran into disrupting its vital oil supplies. Iran pumps about 4.0 million barrels of oil per day of which around 2.7 million barrels are exported.
German Chancellor Angela Merkel said Friday that Iran's response so far to an international offer over its nuclear programme lacked "important elements" but that the door remained open to resolving the diplomatic crisis.
Speaking at a joint press conference with French President Jacques Chirac, Merkel said Tehran had to grasp the package of incentives it was being offered in return for suspending uranium enrichment.
The US government believes Iran is pursuing a nuclear weapons drive, but Tehran says its program is peaceful.
Iran is the second-biggest player in the Organization of the Petroleum Exporting Countries after kingpin Saudi Arabia.
AFP 25 1957 GMT 08 06
Copyright ©2006 AFP. All Rights Reserved.
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