LONDON, March 23: World oil prices were driven to the highest levels of the year on Friday by news that 15 sailors from a British warship had been seized by Iran, a key crude producer.

In London, the price of Brent North Sea crude for May delivery surged to $63.68 per barrel, the highest since December 8, 2006. The contract later stood at $63.32, marking an increase of 86 cents from Thursday's close.

New York's main oil futures contract, light sweet crude for delivery in May, leapt to $62.65 per barrel on Friday, which was last witnessed on December 22. It later stood at $62.35, a fall of 66 cents.

The price of crude oil had fallen slightly earlier on Friday, but bounced higher after news that about 15 sailors had been seized by Iranian naval vessels in the Gulf on Friday, according to Britain's Ministry of Defence.

The MoD, which said that the sailors had been engaged in “routine” anti-smuggling operations in Iraqi waters, demanded their immediate release and sought urgent clarification from Tehran.

“This sort of incident, and subsequent mishandling, is just the sort of thing that fuels concerns about a global conflagration over oil,” said Fimat analyst John Kilduff.

“It's premature to judge the seriousness of this incident, but it is potentially explosive.” Iran is the world's fourth-biggest producer of oil and is the second-biggest producer in the Organisation of the Petroleum Exporting Countries after cartel kingpin Saudi Arabia.

The seizure of the British servicemen came as the United Nations Security Council prepared to vote on new sanctions aimed at forcing Tehran to curb its nuclear programme.

Industry experts fear that Iran might disrupt its crucial oil exports if the international community punishes the Islamic republic with economic sanctions.

Crude futures had slipped earlier on Friday as traders took profits from big gains on Thursday amid concerns over weak US gasoline or petrol reserves, analysts said.—AFP