Terror alert in Gulf region: Oil prices move up

30-Oct-06

Oil prices moved up, as the markets opened this week, in the wake of a terror alert in the Gulf region. Also contributing to the price hike was trader anticipation signs that OPEC nations were following through on announced production cut, at a time when winter demand for heating oil and natural gas peak. Light, sweet crude for December inched up to US$60.82 a barrel in Asian electronic trading on the New York Mercantile Exchange. A British navy official had revealed a threat from Al-Qaeda last month to target Gulf oil terminals. This had resulted in stepped-up security and vigilance at Saudi Arabia's Ras Tanura terminal, as well as a refinery in Bahrain.