Oil rises on Greek vote, Iranian supply concerns

Oil prices rose Monday after Greece took a key step away from a default on its huge debt that could hurt Europe's economy and cut demand for oil.

Crude prices also got a boost from renewed tensions about Iran's oil supplies after some shipping companies said they will stop loading Iranian crude on to tankers because of pending United States (US) and European sanctions against Iran.

Benchmark oil rose $1.82 to $100.49 per barrel Monday in New York. Brent crude, which is used to price many international varieties of oil, rose 55 cents to $117.30 per barrel in London.

Greek lawmakers over the weekend approved deep spending cuts needed for the country to get more bailout money and avoid default on its massive debt. European leaders will meet Wednesday to discuss giving Greece more funds. Without a deal Greece faces a crippling bankruptcy that could affect the broader European economy. That in turn could slow demand for oil.

Investors were encouraged that Greece would get the bailout money it needs but, "It's not like there is absolute certainty that everything is solved," said Michael Lynch, president of Strategic Energy & Economic Research.

Meanwhile, several shipping companies have stopped taking on shipments of Iranian oil because of US and European sanctions that will start taking effect in a few months. The US and the European Union want to deprive Iran of the oil income it needs to fund what they believe is a programme to build nuclear weapons.

- AP