Crude oil traded above $74 a barrel in New York after rising yesterday on concern Iran's refusal to stop nuclear research may prompt United Nations action against the world's fourth-largest oil producer.
Iranian President Mahmoud Ahmadinejad said yesterday his country won't back down ``one iota'' over its nuclear program. The five permanent members of the UN Security Council and Germany will meet today to decide how to proceed, European foreign policy chief Javier Solana said yesterday after a meeting with Iran's top nuclear official.
``There is definitely an Iranian fear premium in the price,'' said Rowan Menzies, a commodity market analyst at Commodity Warrants Australia Pty in Sydney. ``Whenever news comes out that things are not progressing smoothly, there is just really no reason to be short.''
Crude oil for August delivery was unchanged at $74.16 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 10:37 a.m. in Singapore. Crude reached a record $75.78 on July 7 and prices today are 22 percent higher than a year ago.
The August contract snapped a three-day losing streak yesterday, touching a peak of $74.60 a barrel and closing above $74 a barrel.
In London, Brent crude oil for August settlement was down 17 cents, or 0.2 percent, at $73.50 in after-hours trading on the ICE Futures exchange at 9:49 a.m. Singapore time.
Uranium Enrichment
Iran says it wants to enrich uranium to low levels so that it can fuel a nuclear power plant. The U.S. and Europe are concerned that Iran will enrich uranium to the higher levels needed to make a nuclear weapon.
Iran must suspend uranium enrichment if it wants to avoid the dispute being referred to the Security Council, U.S. State Department spokesman Sean McCormack said yesterday.
Prices have risen 22 percent this year, partly on concern exports from Iran may be cut, and on signs rising demand in the U.S., the world's biggest oil consumer, may strain summer fuel supplies.
A U.S. Energy Department report today will probably show the nation's gasoline supplies fell by 250,000 barrels, based on the median forecast from a Bloomberg News survey of 15 analysts.
``We're very close to record demand right now,'' said Mark Waggoner, president of Excel Futures Inc. in Huntington Beach, California. ``We're going to see a draw this week and unleaded gasoline is going to go higher and crude oil is going higher.''
Imports, Demand
Prices fell last week after U.S. gasoline stockpiles unexpectedly rose to 213.1 million barrels in the week ended June 30, aided by increased imports. The gain left inventories 0.2 percent below the five-year average for the period. Supplies rose even as daily demand surged to 9.65 million barrels, the third highest on record.
Gasoline for August delivery was down 0.08 cents to $2.1917 a gallon in after-hours trading, after rising 0.8 percent to $2.1925 yesterday, the first gain in four days.
Rising oil costs will lift U.S. pump prices to an average $2.88 a gallon this summer, the Energy Department said yesterday, up 4.3 percent from its June estimate.
U.S. crude-oil inventories held 341.3 million barrels on June 30, 10 percent more than the five-year average. Stockpiles probably fell by 1.3 million barrels last week, based on the analyst survey, as refineries increased production to meet summer gasoline demand.
The U.S. government holds another 689 million barrels in the nation's strategic petroleum reserve.
Iranian President Mahmoud Ahmadinejad said yesterday his country won't back down ``one iota'' over its nuclear program. The five permanent members of the UN Security Council and Germany will meet today to decide how to proceed, European foreign policy chief Javier Solana said yesterday after a meeting with Iran's top nuclear official.
``There is definitely an Iranian fear premium in the price,'' said Rowan Menzies, a commodity market analyst at Commodity Warrants Australia Pty in Sydney. ``Whenever news comes out that things are not progressing smoothly, there is just really no reason to be short.''
Crude oil for August delivery was unchanged at $74.16 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 10:37 a.m. in Singapore. Crude reached a record $75.78 on July 7 and prices today are 22 percent higher than a year ago.
The August contract snapped a three-day losing streak yesterday, touching a peak of $74.60 a barrel and closing above $74 a barrel.
In London, Brent crude oil for August settlement was down 17 cents, or 0.2 percent, at $73.50 in after-hours trading on the ICE Futures exchange at 9:49 a.m. Singapore time.
Uranium Enrichment
Iran says it wants to enrich uranium to low levels so that it can fuel a nuclear power plant. The U.S. and Europe are concerned that Iran will enrich uranium to the higher levels needed to make a nuclear weapon.
Iran must suspend uranium enrichment if it wants to avoid the dispute being referred to the Security Council, U.S. State Department spokesman Sean McCormack said yesterday.
Prices have risen 22 percent this year, partly on concern exports from Iran may be cut, and on signs rising demand in the U.S., the world's biggest oil consumer, may strain summer fuel supplies.
A U.S. Energy Department report today will probably show the nation's gasoline supplies fell by 250,000 barrels, based on the median forecast from a Bloomberg News survey of 15 analysts.
``We're very close to record demand right now,'' said Mark Waggoner, president of Excel Futures Inc. in Huntington Beach, California. ``We're going to see a draw this week and unleaded gasoline is going to go higher and crude oil is going higher.''
Imports, Demand
Prices fell last week after U.S. gasoline stockpiles unexpectedly rose to 213.1 million barrels in the week ended June 30, aided by increased imports. The gain left inventories 0.2 percent below the five-year average for the period. Supplies rose even as daily demand surged to 9.65 million barrels, the third highest on record.
Gasoline for August delivery was down 0.08 cents to $2.1917 a gallon in after-hours trading, after rising 0.8 percent to $2.1925 yesterday, the first gain in four days.
Rising oil costs will lift U.S. pump prices to an average $2.88 a gallon this summer, the Energy Department said yesterday, up 4.3 percent from its June estimate.
U.S. crude-oil inventories held 341.3 million barrels on June 30, 10 percent more than the five-year average. Stockpiles probably fell by 1.3 million barrels last week, based on the analyst survey, as refineries increased production to meet summer gasoline demand.
The U.S. government holds another 689 million barrels in the nation's strategic petroleum reserve.
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