March 30, 2007	Friday	Rabi-ul-Awwal 10, 1428

LONDON, March 29: World oil prices soared on Thursday, rebounding above $67 a barrel in London after Iran decided against releasing a female British sailor detained with 14 male colleagues.

Analysts have said the world's fourth biggest producer of crude might decide to disrupt its crude exports amid rising tensions between Iran and the West.

Oil prices are being supported also by Iran's refusal to bow to international pressure over its disputed nuclear programme.

In London, the price of Brent North Sea crude for May delivery jumped $1.62 to $67.40 a barrel in electronic trading. The intra-day peak stood at $67.65.

New York's main oil futures contract, light sweet crude for delivery in May, surged $1.36 to $65.44 in pit trading, after a peak of 65.48.

Prices had dipped slightly earlier on Thursday after recent surges linked to Iran news. But they rebounded “on the story that the Iranians might not release” Turney, Bache Financial trader Tony Machacek said in London.

“The market is just very nervous, so any sort of headline or rumour that suggests that the situation between the West and Iran -- between Britain and Iran -- might be getting worse is going to have a bullish impact on prices.” Machacek added that the Iranian situation was over-shadowing oil's true demand-supply balance in the market.

Crude futures had Tuesday soared to six-month highs of $69 in London and 68.09 in New York on rumours of military conflict in Iran. They fell back after the stories were unfounded. —AFP