The price of oil approached $74 a barrel in London trade today, nearing a record high due to supply concerns.
Brent North Sea crude for August delivery climbed 36 cents to $73.62 a barrel in electronic deals after touching $73.99 earlier today. London Brent had struck a record high of $74.97 in May on the back of heightened tensions in major oil producer Iran.
Trading in New York crude is set to resume on Wednesday following tomorrow's Fourth of July celebrations. New York's main contract, light sweet crude for delivery in August, had closed at $73.93 a barrel on Friday. Its record high stands at $75.35, which was set in April.
Analysts pointed to tight supplies of US motor fuel and persistent concerns over Iran as key factors supporting prices. Ongoing tensions in oil-rich Nigeria and the US hurricane season were also cited as reasons behind the high cost of crude.
Last year hurricanes severely damaged energy installations on the US Gulf coast, pushing oil prices to record highs.
In the absence so far of any major hurricane damage, the market's main focus remains over the adequacy of US petrol supplies.
