Oil prices continued to rise in Asian trading along with rising tensions between Iran and Britain and coupled with concerns surrounding another kidnapping of an oil worker in Nigeria. Light, sweet crude for May delivery rose to US$65.98 a barrel in electronic trading on the New York Mercantile Exchange midday in Singapore.
Crude prices did fall earlier in the day after the British government said it was in direct contact with Iran and examining options for new dialogue over the crew of 15 sailors and marines seized by Iran over a week ago. But prices rebounded as trading progressed. Tensions mounted as over the weekend, Iranian students pelted the British Embassy in Tehran with rocks and firecrackers and Iranian state television aired more alleged confessions by the seized British marines.
Iran is located along the Strait of Hormuz, through which tankers ship about 17 million bpd of crude oil, almost two-fifths of the world's crude oil traded by tanker, and about one-fifth of total oil production. Some market players believe that if tension escalates, then the passage of crude could be hit, affecting supplies worldwide.
02-Apr-07 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}