[Peakoil] World oil price

[Alex P]

>From Jenny

------------- Forwarded message follows -------------


August 01, 2006 06:50am

Article from: Agence France-Presse
 

WORLD crude prices rose strongly overnight as traders warily tracked 
developments in the Middle East conflict and news of increased UN pressure 
on Iran.

Traders were also weighing up the impact of a pipeline leak in Russia, 
which threatens a major oil supply route from Russia to Europe. 
New York's main contract, light sweet crude for delivery in September, 
closed up $US1.16 at $US74.40 per barrel.

In London, Brent North Sea crude for September delivery settled up $US1.76 
at $US75.15 per barrel.

Overnight, Israel vowed to step up its offensive on Hezbollah, saying an 
immediate truce would only spur on the militant group that has repeatedly 
launched rockets at the Jewish state despite a three-week Israeli 
bombardment of Lebanon. 

"The situation is rife with confusion as some reports suggest an immediate 
ceasefire deal has been worked out, contrasted with Israeli assertions that 
its campaign will require upwards of two weeks to complete," said Fimat 
energy analyst John Kilduff.

"There is a growing consensus, however, that the situation will remain 
contained and not involve other countries in the region, such as Syria and 
Iran," he said.

Fears of a wider conflict in the Middle East caused oil prices to soar to 
all-time highs above 78 dollars earlier this month.

They have since fallen considerably on profit-taking and news on Saturday 
of slowing economic growth in the United States.

However, crude futures were supported overnight by news that one of the 
main pipelines delivering oil from Russia to its European neighbours was 
ruptured on Sunday, posing a serious environmental threat.

"Prices have moved up ... with traders concerned over reports of a serious 
oil spill on the Druzhba pipeline, which ships over 1.2 million-1.4 million 
barrels per day of crude oil to Europe," said Barclays Capital analyst 
Kevin Norrish.

Oil prices also gained after the UN Security Council overnight tightened 
the screws on Iran over its nuclear program, ordering Tehran to halt 
uranium enrichment work by August 31 or face possible sanctions. 

But the text stopped short of an immediate threat of sanctions, which have 
been opposed by Russia and China, and said punitive action would have to be 
the subject of further debate.

Security analysts have said that in the event of sanctions, Iran might 
retaliate and block the Strait of Hormuz, which is a crucial outlet for oil 
shipments to Japan, the United States and Western Europe.

Iran is the world's fourth-biggest producer of crude oil and exports around 
2.7 million barrels per day. 



_____________

Alex

O4O4873828

ACT Peak Oil
http://act-peakoil.org