Nuclear row sends oil to new high
April 18, 2006
Oil prices have hit a record high of $70.86 a barrel, fuelled by growing fears over Iran's nuclear standoff with the international community.
US light, sweet crude rose 46 cents in Asian trading, passing last year's previous high of $70.85 reached after Hurricane Katrina.
Prices have risen 16% in the past month as Iran's nuclear row has worsened and Nigerian supplies have been disrupted.
Brent crude hit also hit a new record of $71.93 a barrel in London.
Iran issue
Analysts said that prices would continue to head upwards as long as Iran's dispute with the international community over its nuclear intentions remained unresolved.
"The Iran issue is the driver of the day, the extra factor causing the run-up in prices," said Tobin Gorey, a commodities strategist at the Commonwealth Bank of Australia.
Violence in Nigeria, which has led to the suspension of 25% of its output, has also forced prices upwards in the past four weeks.
Over this period, prices have gained more than $10, or 16%.
Global demand for oil remains intense, particularly in the run-up to the US driving season, while available supplies remain tight.
"The basic thing underlying the industry is that global demand remains very strong," Mr Gorey added.
Countries in the Opec oil producers' cartel have admitted there is little they can do to quell the rise in prices.
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