OIL ROSE back above $130 a barrel yesterday after its biggest one-week slide on record, supported by inconclusive talks at the weekend between Iran and world powers over its nuclear programme.
Tropical Storm Dolly, which is headed for Mexico's Yucatán Peninsula, also helped boost the market as the storm is set to pass just north of Mexico's huge Cantarell oilfield.
US crude prices were up $1.09 to $129.97 a barrel at midday in New York. Concerns about US demand knocked prices from record highs of more than $147 a barrel last week.
The US National Hurricane Centre warned the storm could reach hurricane strength today, but the US Energy Information Administration said it was likely to miss major oil-producing areas.
Shell Oil began flying workers from offshore platforms as a precaution, while many other oil companies with installations in the Gulf of Mexico said they were closely watching the storm.
US secretary of state Condoleezza Rice warned Iran that it faced more sanctions if it defied a two-week deadline delivered over the weekend to answer calls to rein in its nuclear programme.
Concerns that the stand-off could lead to a disruption of oil supplies from the Opec nation have supported crude in its climb to new highs this month. - (Reuters)
