Oil rallies on lower stockpiles, Iran tensions
Thursday, 18 June 2009 17:32Oil prices rose this evening after a sharp drop in US crude reserves and unrest in crude exporters Iran and Nigeria. US crude advanced 20 cents to $71.23 a barrel, while Brent North Sea crude was up 16 cents at $71.
Analysts said a sharp decline in US crude inventories showed that energy demand was partly improving in the US, the world's biggest energy consumer.
The weekly US Department of Energy (DoE) report released on Wednesday showed crude stockpiles falling for the second week running, by 3.9 million barrels, far sharper than analysts' predictions.
The market was also following developments on the political front. In oil-producing Iran, the country's opposition plans a day of street marches and mourning for protesters killed in post-election violence, keeping up the pressure on the Islamic regime over the disputed vote.
In Nigeria, a key African oil exporter, militants said they had destroyed a major crude pipeline belonging to Royal Dutch Shell as they continued their campaign against foreign companies.
