Oil price climbs above US$106
Published:Wednesday | February 22, 2012 | 12:00 AM
Oil prices on Tuesday climbed to the highest level since May on concerns about Europe's oil supplies.
Iran announced on the weekend that it will stop selling oil to Britain and France in retaliation for a planned European oil embargo this summer.
It raised concerns that Iran could take the same hard line with other European nations that use more Iranian crude.
The European Union buys about 18 per cent of Iran's oil exports, though most of that comes from sales to just two countries: Italy and Spain.
Benchmark crude rose by US$2.65 to US$106.25 per barrel in New York. That's the highest price for oil since May 11.
Brent crude, which is used to price foreign oil varieties imported by US refineries, rose by 55 cents to US$120.60 in London.
US retail gasolene prices rose less than a penny Monday to a national average of US$3.57 per gallon, according to AAA, Wright Express and Oil Price Information Service.
Experts predict gasolene prices in the US could hit a record of US$4.25 per gallon (US$1.12 per litre) by late April.
In other energy trading, heating oil rose 5 cents to US$3.24 per gallon.
Gasolene futures rose 5.46 cents to US$3.07 per gallon. Natural gas futures fell by 5.8 cents to US$2.63 per 1,000 cubic feet.
- AP