LONDON, July 14: Crude oil prices swung on Monday back towards last week’s record highs as oil workers in Brazil began a five-day strike that further tightened global energy supplies, traders said.

New York’s main oil contract, light sweet crude for August delivery, added 82 cents to $145.90 a barrel. The contract had hit a peak of $147.27 on the New York Mercantile Exchange on Friday.

London’s Brent North Sea oil for August gained 61 cents to $145.10, after hitting an all-time high of $147.50 last Friday.

“Prices are firm ... as the risk of supply disruptions around the world looms large,” Barclays Capital analysts wrote in a note to clients on Monday.

In Brazil, workers in the country’s main oil-producing region began a five-strike on Monday, cutting overall daily output by nearly a third, their union said.

Traders said mounting geopolitical tension in the oil-rich Middle East and unrest in key producer Nigeria also provided underlying support for prices.

“It seems clear that geopolitics will continue to provide fuel for the seemingly relentless rally, with Iran and Western nations still at a standoff over the Islamic republic’s pursuit of a uranium enrichment programme,” said Linda Rafield, senior analyst at energy information provider Platts.

Earlier on Monday, oil prices fell as investors followed the stronger dollar and took profits from last week’s record-breaking surge.

The strengthening US unit tends to dampen oil prices because it discourages demand for dollar-priced crude which becomes more expensive for buyers using weaker currencies.—AFP