September 29, 2006	Friday	Ramazan 5, 1427

LONDON, Sept 28: Crude oil prices rose further on Thursday, breaching $64 per barrel in New York, as the market focused on tensions over Iran and a possible supply cut by Opec, analysts said.

New York's main contract, light sweet crude for delivery in November, climbed 95 cents to $63.90 per barrel in pit trading. The contract earlier rose above $64 for the first time since September 19.

In London, Brent North Sea crude for November delivery gained 75 cents to $62.96 per barrel in electronic deals.

World oil prices, which have dived spectacularly in recent weeks on easing supply concerns, had staged a rally on Wednesday, soaring $1.95 in New York and $2.09 in London.

Wednesday's strong gains, which were extended on Thursday, “were triggered by a technically based rally and heightened concerns about Iran's nuclear enrichment programme”, said Michael Davies, an analyst at the Sucden brokerage firm in London.

Talks between Iran's top nuclear negotiator Ali Larijani and European Union foreign policy chief Javier Solana failed to produce an accord but were positive and constructive, both men said on Thursday.

The United States is calling for economic sanctions against Iran, the world's fourth-biggest producer of crude, unless Tehran halts uranium enrichment activities.

Analysts warn that Iran could retaliate to sanctions by disrupting its oil exports, which would lead to a surge in the price of crude futures.

Davies meanwhile noted that crude futures were also gaining from speculation that the Organisation of Petroleum Exporting Countries “may call an emergency meeting to cut oil production”.

Reserves of gasoline showed an increase of 6.3m barrels to 213.9 million in the week to September 22. That was almost six times analysts' consensus forecasts and the biggest rise in five years. —AFP