Singapore, March 30: Oil prices jumped to new 2007 highs in Asian trade today as tensions over Iran's detention of British military personnel increased further, dealers said.
At 11:39 am (local time) New York's main oil futures contract, light sweet crude for delivery in May, was up 62 cents to 66.65 dollars a barrel from 66.03 dollars in late US trades, the highest price since early September.
Brent North Sea crude for May was up 73 cents at 68.61 dollars.
Geopolitical risk in Iran, the world's fourth biggest oil producer, remains the key factor applying upward press said.
"Iran is more aggressive in handling the issue of the detained sailors. They won't beg. They're making a pretty tough stance, driving up the possibility of military conflict in the Gulf," said CFC Seymour senior investment strategist Dariusz Kowalczyk in Hong Kong.
He said the market was pricing in the possibility of further risks over the weekend.
"The market will continue to reassess the risk to supply ... The potential for conflict and the disruption of oil supply is real because Iran is directly involved and oil could hit record highs if anything happens," he said.
"The market is just very nervous so any sort of headline or rumour that suggests that the situation between the West and Iran -- between Britain and Iran -- might be getting worse is going to have a bullish impact on prices," Bache financial trader Tony Machacek said in London hours.
Bureau Report
First Published: Friday, March 30, 2007, 00:00