Oil stood $1 higher at $64 a barrel on Wednesday, with traders still rattled by a rumour — quickly dismissed by U.S. officials — that some sort of conflict had broken out between the United States and Iran.

U.S. crude prices jumped to a more than six-month high of $68.09 a barrel in after-hours trade late on Tuesday, but quickly fell back to stand at $63.97 a barrel by 0027 GMT, up $1.04 from Tuesday’s close. Oil rose just 2 cents in normal trade a day ago.

In London, Brent crude was up $1.02 to $65.62 a barrel, extending a six-day rally that has added $5.50.

Oil surged $5 late on Tuesday evening on rumours of an unspecified conflict between Western forces and Iran, the world’s fourth-largest oil exporter, which has been under mounting world pressure to abandon its nuclear programme.

U.S. officials knocked down any talk of military action.

“We have no information at this time that indicates any incident taking place,” said White House National Security Council spokesman Gordon Johndroe.

Source: Reuters

---

Related Posts »»
::Iran Continues To Play Chicken
::Is Iran Backed Into a Corner On Nuclear Program?
::Prediction: Rumor Will Come True

---