LONDON, May 30: World oil prices leapt on Tuesday as traders tracked the latest developments over the Iranian nuclear crisis, while absorbing new data pointing to buoyant Chinese energy demand.

New York’s main contract, light sweet crude for delivery in July, surged by $1.28 to $72.65 per barrel in pit trading.

In London, Brent North Sea crude for July delivery soared $1.07 to $71.74 per barrel in electronic deals.

Markets were shut on Monday owing to public holidays in Britain and the United States.

“With little else to focus on, the markets have resumed fretting over the Iranian nuclear dispute,” said Bank of Ireland analyst Paul Harris.

He added that oil will likely “trade up through $72 in the course of the week”.

The market is concerned that Iran — the world’s fourth biggest producer of crude — could halt exports should the United Nations impose sanctions on the Islamic republic over its disputed nuclear programme.

Turning to China, Barclays Capital analyst Kevin Norrish said that Tuesday’s price gains were also explained by continued strong Chinese oil demand growth.

“According to customs data, Chinese apparent demand grew by 6.3 per cent in April,” Norrish said.

“Chinese oil demand is most likely to continue at a similar pace for the rest of the year underpinned by a positive economic outlook and the recent rise in retail product prices.”

Market participants are, meanwhile, awaiting Wednesday’s latest snapshot of US crude inventories.

All eyes will be on gasoline or petrol stockpiles amid the start of the summer driving season when demand for motor fuel peaks as Americans take to their vehicles on vacation.—AFP