Oil rises on global supply worries

Oil rose towards $67 today amid global supply worries caused by tension over Opec member Iran and a strike in France that threatens…

Oil rose towards $67 today amid global supply worries caused by tension over Opec member Iran and a strike in France that threatens to crimp summer fuel supplies in the United States.

US light crude for May delivery rose 18 cents to $66.21 a barrel by 9.10am Irish time, having jumped 3 per cent to a six-month closing high the previous day.

London Brent rose 32 cents to $68.20, its eighth day of gains. A week after Iran detained 15 British sailors and marines in the Gulf, Britain is still trying to secure their release.

That issue, coupled with new UN sanctions imposed on Tehran at the weekend over its nuclear programme, fed traders' fears about a disruption in exports from Iran, the world's fourth-largest exporter, or through the Strait of Hormuz, conduit for roughly two-fifths of all globally traded oil.

READ MORE

The market has also been supported by tightening fundamentals ahead of the peak summer driving season in top consumer the United States, including a drawdown in US fuel stocks and refinery glitches.

A 16-day strike at French port Fos-Lavera, the world's third-largest oil port, is also endangering refinery operations and fuel exports to the United States.

Utility Gaz de France and striking workers failed to reach a compromise yesterday. The two sides will meet again later today.