Alert Sign Dear reader, online ads enable us to deliver the journalism you value. Please support us by taking a moment to turn off Adblock on Dawn.com.

Alert Sign Dear reader, please upgrade to the latest version of IE to have a better reading experience

.

Oil price jumps

June 29, 2007

LONDON, June 28: The New York oil price surged above $70 per barrel for the first time in ten months on Thursday, amid tight supplies in the US, the world's biggest consumer of energy.

New York's main oil futures contract, light sweet crude for delivery in August, soared by more than a dollar to $70.52 in electronic deals -- the highest level since August 28, 2006.

It later stood at $70.25 in pit trading, up $1.28.

In London, Brent North Sea crude for August delivery gained 41 cents to $70.94 per barrel in electronic deals.

“Essentially, it is just the extension of the gains of yesterday's rally,” said BMO Capital Markets analyst Bart Melek.

Crude prices closed more than a dollar higher on Wednesday after the US Department of Energy (DoE) reported that American petrol stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22.

That surprised the market, as analysts had expected a gain of 1 million barrels.—AFP