Oil prices have rebounded above $60 a barrel again on renewed tension between the US and Iran and continuing cold weather in the US.
The cost of a barrel of light, sweet crude rose 50 cents to $60.21 in Asian trading on Friday after settling at $59.71 the day before. Prices have flirted with the $60 mark in recent days after falling below $50 last month as demand for oil eased. Fresh violence in oil-rich Nigeria also served to push prices up. The kidnapping of a French national in the oil-rich Niger delta was the 40th such action in the past month. The cold snap in the US, which is expected to last for another week, has increased demand for heating oil while Iran's supreme leader Ayatollah Khamenei said the country would attack US interests if it was attacked. But one analyst said the market had over-reacted to the latest developments. „We have to remember that the geopolitical risks, especially in relation to Iran, have not really been realized in terms of affecting supply and that the winter season will be over in a month,” said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures. (BBC NEWS)