Oil Rises Above $72 Amid Iran Tensions
Also, rising demand from China—Asia's largest consumer of fuels— have lifted oil prices in recent weeks, with crude futures now trading about 19 percent higher than a year ago.
"The market seems to be extending some of the gains from last week," said Man Financial broker Andrew Lebow. "Gasoline has provided a lot of the leadership" for the oil-price increases.
Light sweet crude for August delivery rose 35 cents to $72.15 a barrel on the New York Mercantile Exchange. Gasoline futures were up nearly 2 cents at $2.197 a gallon.
Brent crude futures on the ICE Futures exchange climbed 54 cents to $71.27 a barrel.
The U.S. Coast Guard says only limited tug and barge traffic had resumed through the Calcasieu Ship Channel, which had been off limits due to the spread of oil from a spill last week at the Citgo Petroleum Corp. facility in Lake Charles, Louisiana. The closure, which has lasted for six days, has forced four refineries on the Gulf Coast to reduce runs, albeit in tiny amounts.
On Tuesday, Iran's Ayatollah Ali Khamenei said Iran does "not need" talks with the United States over its nuclear program because nothing would be gained, state television reported.
Washington has warned Iran that it could face political and economic sanctions before the U.N. Security Council if it doesn't stop its nuclear activities, which the United States and its European allies say is an attempt to produce nuclear weapons. Tehran says the uranium will be used only for a peaceful energy program.
Elsewhere, recent Chinese customs data showed the country's oil demand growth accelerated to 13.5 percent in May, as refiners boosted output and curbed exports ahead of a domestic price increase to meet peak summer demand. The rapid increase in car sales in China—to 24.1 percent in May from a year earlier—have also contributed to the rise in gasoline demand, Shum said.
In other Nymex trading, heating oil futures rose nearly 2 cents to $2 a gallon, while natural gas futures climbed 8 cents to $6.05 per 1,000 cubic feet.
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