The price of oil rose here on Friday, July 10, amid mild concern that Gulf Arab oil nations could become embroiled in the Middle East conflict after a new wave of Israeli-Palestinian violence. The price of a barrel of benchmark Brent North Sea crude for September delivery rose to $26.05 from $25.68 on Thursday evening.
On New York, light sweet crude September futures rose 10 cents overnight to $27.64.
"Middle East tensions remain a background factor," said an oil expert with the GNI brokerage, Lawrence Eagles.
"The suicide attack that killed up to 18 people had little effect on the oil market during the trading session yesterday (Thursday)," he noted. "But the replaying of the atrocity on the overnight news has shifted attention towards the deteriorating situation in the region."
On Friday Israel launched major retaliation for Thursday's Jerusalem suicide bombing, seizing a major Palestinian building in east Jerusalem and carrying out a series of hard-hitting strikes on other targets.
The violence stirred mild concern among traders that Gulf Arab oil nations could withhold supplies to world markets in support of the Palestinians.
The basket price used by the Organisation of Petroleum Exporting Countries (OPEC) fell to $24.50 on Thursday from $24.73 on Wednesday, the OPECNA agency reported from Vienna. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)
