US crude oil bolted nearly 7 per cent higher yesterday after a three-day shutdown as fears grew of military conflict in the oil-rich Middle East following Tuesday's attacks on the United States.
New York Mercantile Exchange (NYMEX) October crude raced $1.89 (€2.07) a barrel higher to close at $29.52, after hitting a session peak of $29.98, its highest level since mid-May.
Traders seized the chance to cover outstanding short positions as the US Congress readied a bipartisan resolution authorizing President George W. Bush to order what may be prolonged strikes.
The US military was seeking oil tankers yesterday to move diesel fuel to Diego Garcia in the Indian Ocean, site of a US Air Force base. It has booked another tanker to move jet fuel from Greece to southern Spain, ship brokers said.
World benchmark Brent in London closed up $1.06 a barrel at $29.43, more than $2 up from first news of the disaster.
