Oil held near $74 today as world diplomats called for an urgent, sustainable ceasefire between between Israel and Hizbollah guerrillas in Lebanon. An attack on a Nigerian oil plant further cut output and earlier nudged up prices.
US crude rose 10 cents to $73,85 a barrel by afternoon trade.
Brent crude was up 36 cents at $73,64 a barrel. Both contracts lost over a dollar yesterday.
Foreign ministers from the US, the Middle East and Europe agreed at a meeting in Rome on the need for an urgent ceasefire and for an international force under United Nations mandate to secure the border between Lebanon and Israel.
UN Secretary-General Kofi Annan said that it was important to include both Iran and Syria to reach an agreement to end fighting, while US Secretary of State Condoleezza Rice voiced "concern" about Iran’s role in Lebanon.
Oil hit a record-high of $78,40 a barrel almost two weeks ago as fighting erupted.
Consumers are worried that the war could spread and endanger exports and shipping from the region that supplies almost a third of the world’s oil. But the price has since fallen nearly $5.
"We think for the moment that we’ve probably seen the worse we’re going to see in terms of an oil price response to the conflict," said Katherine Spector, global head of energy strategy at JP Morgan.
US crude rose 10 cents to $73,85 a barrel by afternoon trade.
Brent crude was up 36 cents at $73,64 a barrel. Both contracts lost over a dollar yesterday.
Foreign ministers from the US, the Middle East and Europe agreed at a meeting in Rome on the need for an urgent ceasefire and for an international force under United Nations mandate to secure the border between Lebanon and Israel.
UN Secretary-General Kofi Annan said that it was important to include both Iran and Syria to reach an agreement to end fighting, while US Secretary of State Condoleezza Rice voiced "concern" about Iran’s role in Lebanon.
Oil hit a record-high of $78,40 a barrel almost two weeks ago as fighting erupted.
Consumers are worried that the war could spread and endanger exports and shipping from the region that supplies almost a third of the world’s oil. But the price has since fallen nearly $5.
"We think for the moment that we’ve probably seen the worse we’re going to see in terms of an oil price response to the conflict," said Katherine Spector, global head of energy strategy at JP Morgan.
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