LONDON, Oct 14: Oil prices rose in late trading here on Tuesday, with traders saying that fund buying and technical factors were responsible rather than yet another bomb blast in Iraq.
The price of reference Brent North Sea crude oil for delivery in November rose 49 cents to $31.16 per barrel, having slipped back earlier in the day.
New York’s benchmark light sweet crude November contract was showing a rise of 40 cents to $32.35 per barrel in morning trading.
Hopes that Iraq’s oil exports could soon be boosted were dealt a further blow on Tuesday with a suicide car bombing outside the Turkish mission. However analysts said that other factors were behind the price increases.
“It looks to be largely fund buying, there is no fundamental news that we are aware of. We are a bit surprised to see prices up at these numbers,” said an analyst.
The increase was a “very strange move,” added Jon Rigby from Commerzbank. “The only thing I see is that there were still very large short positions in the market and we are seeing some covering now” ahead of the expiry of the November contract for Brent crude, he said.—AFP
