World oil prices rose today on supply concerns caused by the threat of a tropical storm near the US and fears that Iran may disrupt exports if hit by economic sanctions over its disputed nuclear programme.
In London, Brent North Sea crude for October delivery climbed 60 cents to $73.28 per barrel in electronic deals. New York's main contract, light sweet crude for delivery in October, advanced 69 cents to $73.05 per barrel in pit trading.
Although the British stock market is closed on Monday for a public holiday, oil trading in London continues as normal.
According to the National Hurricane Center (NHC) in the US, a tropical depression currently north of Venezuela was threatening to become a tropical storm.
The depression, which will be known as Ernesto should it turn into a storm, has grabbed the market's attention owing to its flight towards the Gulf of Mexico, where oil platforms produce between 25 and 30% of US crude.
Last year, energy facilities on the rig-heavy US Gulf Coast were ravaged by hurricanes, pushing oil prices to then-record high points.
Elsewhere, the market continued to focus on Iran, the world's fourth biggest producer of crude. In line with a UN Security Council resolution, the US and its European allies insist that Iran must stop enriching uranium by August 31 or face the threat of sanctions.
Analysts argue that sanctions could lead to Iran disrupting its vital oil supplies. Iran pumps about 4 million barrels of oil per day of which around 2.7 million barrels are exported.
German Chancellor Angela Merkel said today that Iran's response to an international offer over its nuclear programme lacked "important elements" but that the door remained open to resolve the crisis.
Speaking at a joint press conference with French President Jacques Chirac, Merkel said Tehran had to grasp the package of incentives it was being offered in return for suspending uranium enrichment.
Iran, which has insisted its nuclear programme is for peaceful purposes, is the second-biggest player in the Organization of Petroleum Exporting Countries after Saudi Arabia.
