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Oil Prices Rise Back Above 67 Dollars

Posted on: Saturday, 28 January 2006, 09:00 CST

Oil prices rise back above 67 dollars

NEW YORK, Jan. 27 (Xinhua) -- World crude prices rose sharply Friday on concerns about Iran's nuclear tensions and reduced Nigerian production.

New York's main contract, light sweet crude for delivery in March, climbed 1.50 dollars to close at 67.76 dollars a barrel.

In London, the price of Brent North Sea crude for March delivery gained 1.32 dollars to finish at 66.24 dollars a barrel.

On the New York Mercantile Exchange, gasoline futures rose 5.21 cents to settle at 1.7364 dollars per gallon, while heating oil gained 2.89 cents to 1.8069 dollars a gallon. Natural gas rose 17. 1 cents to 8.40 dollars per 1,000 cubic feet.

Oil prices have climbed more than 10 percent since Iran said it would restart nuclear research on Jan. 3. Iran warned Monday that if it was referred to the UN Security Council, which has the power to impose sanctions, it would immediately forge ahead with developing a full-scale uranium enrichment program.

Disruptions in Nigerian oil supplies went further. Royal Dutch Shell has cut production by 221,000 barrels since the start of the crisis, depriving the oil market of a large quantity of highly prized light sweet crude. Nigerian President Olusegun Obasanjo vowed Thursday to restore stability to the Niger Delta. Nigeria is Africa's largest oil exporter and the unrest has cut 10 percent of its daily oil output.

Crude prices struck record highs of 70.85 dollars a barrel on Aug. 30 in New York and 68.89 dollars in London, on worries of Hurricane Katrina.

Source: Xinhua News Agency - CEIS

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