Oil prices rose on Friday as the market watched Iran’s stand-off with the West over its nuclear programme and amid concerns that tropical storms could threaten United States Gulf coast oil refineries.
Gasoline prices also climbed higher.
Prices fell earlier in the week after US Department of Energy weekly data showed a rise in gasoline stockpiles, as well as higher than expected crude oil and distillate stockpiles.
But on Thursday and Friday, the market had other concerns.
”The Iranian nuclear issue will keep a floor under prices for a long time, and we are entering into the peak of the US hurricane season,” said Victor Shum, an analyst at Purvin & Gertz in Singapore.
Vienna’s PVM Oil Associates said tropical-storm fears pushed prices higher, adding: ”The market is still eyeing developments concerning Iran’s nuclear ambitions.”
Light, sweet crude for October delivery rose by $0,89 to $73,25 a barrel by mid-afternoon in Europe in electronic trading on the New York Mercantile Exchange. On London’s ICE Futures exchange, October Brent crude rose by $1,06 to $73,74 a barrel.
In other Nymex trading, gasoline futures rose more than three cents to $1,8950 a gallon (3,8 litres), while heating oil rose more than two cents to $2,0540 a gallon. Natural gas increased by 31,1 cents to $7,390 per 1 000 cubic feet.
Traders are concerned about the possibility of Iran, the world’s fourth-biggest oil producer, blocking oil exports if it is sanctioned by the United Nations over its nuclear programme. The UN set an August 31 deadline for Iran to halt its nuclear programme but Tehran said on Tuesday that it wants to negotiate further.
The US said Iran’s response fell far short of UN Security Council demands it halt uranium enrichment.
On the weather front, Tropical Storm Debby will probably strengthen in the Atlantic Ocean but stay away from land, the National Hurricane Centre said on Thursday.
At the same time traders are monitoring a tropical wave in the Atlantic, which forecasters say could escalate into a bigger storm, prompting fears a storm could damage Gulf coast oil facilities, as in 2005, when hurricanes Katrina and Rita battered the region. Many refineries are still recovering from those storms. — Sapa-AP
Associated Press writer Tanalee Smith contributed to this report from Singapore