LONDON, July 10: Oil prices shot higher on Thursday on the back of simmering geopolitical tensions about key producer Iran and lingering worries over stretched global crude supplies, traders said.

The International Energy Agency (IEA), meanwhile, forecast that tension on oil markets was set to ease early next year amid an economic slowdown in the United States.

In addition, Opec cut its estimate for world crude demand over the next two decades, predicting that high prices would compel consumer countries to be more efficient in their use of the precious commodity.

New York’s main oil contract, light sweet crude for August delivery, was up $1.53 to $137.58 per barrel.

Brent North Sea oil for August added $1.09 to $137.67.—AFP