Oil Rises to 7-Month High as Iran Nuclear Standoff May Escalate
April 13 (Bloomberg) -- Crude oil rose, closing at a seven- month high
in New York, on concern that the standoff over Iran's nuclear program
will escalate over the holiday weekend, threatening exports from the
world's fourth-biggest oil producer.
Mohamed ElBaradei, head of the International Atomic Energy Agency,
arrived in Iran yesterday after President Mahmoud Ahmadinejad announced
his country has produced enough enriched uranium to fuel a reactor and
will accelerate enrichment. Oil has gained 14 percent this year,
boosted by the Iranian standoff and by insurgent attacks in Nigeria,
Africa's biggest oil producer.
``The approach of the long weekend is pushing prices higher,'' said
Aaron Kildow, a broker at Prudential Financial Derivatives LLC in New
York. ``The problems in Nigeria and Iran could worsen and nobody wants
to take a chance. Once we get back Monday prices may decline.''
Crude oil for May delivery rose 70 cents, or 1 percent, to $69.32 a
barrel on the New York Mercantile Exchange, the highest close since
Sept. 1. Oil touched $69.60 a barrel yesterday, the highest since Sept.
2. Futures reached a record $70.85 a barrel on Aug. 30 after Hurricane
Katrina struck production platforms and refineries along the U.S. Gulf
of Mexico coast.
Brent crude oil for June settlement rose 71 cents, or 1 percent, to
close at $70.57 a barrel on the London-based ICE Futures exchange.
Both Nymex and ICE will be closed tomorrow for the Good Friday holiday.
Gasoline supplies fell 7.9 percent to 207.9 million barrels in the past
six weeks, an Energy Department report showed yesterday.
`Worries About Gasoline'
``Prices are being held up by worries about gasoline,'' said Jason
Schenker, an economist at Wachovia Corp. in Charlotte, North Carolina.
Gasoline using MTBE, or methyl tertiary butyl ether, is being phased
out because refiners don't want to be liable for groundwater
contamination caused by the additive. That may cause logistical
problems as refiners shift to another gasoline blend designed for use
with ethanol.
Gasoline for May delivery rose 1.68 cent, or 0.8 percent, to $2.1079 a
gallon in New York, the highest close since Sept. 30. Futures touched
$2.11, the highest intraday price since Oct. 3. Gasoline is up 42
percent in a year.
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