Oil prices jumped this evening, accelerating earlier gains after a report that Iranian forces had taken control of a disputed oil well with Iraq.
Brent crude bounced as high as $74.84 a barrel before pulling back to $74.50, up $1.13 from Thursday's close. US crude stood at $74.14, up $1.49.
Iranian forces took control of a southern Iraqi oil well on a disputed section of the border, US and Iraqi officials told the AFP news agency.
'There has been no violence related to this incident and we trust this will be resolved through peaceful diplomacy between the governments of Iraq and Iran,' a US military spokesman said.
Prices also rose on signs of rising energy demand in the US, the world's biggest consumer, dealers said. Analysts said stronger American energy demand, boosted by the need for heating fuel during the northern hemisphere winter, is likely to continue supporting oil prices.
