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Monday, August 13, 2012

Brent Crude hits $115 a Barrell, highest since May, on supply concerns and Mideast Tensions


(Reuters) - Oil hit $115 a barrel on Monday for the first time in more than three months as concern about supplies and hopes that governments will roll out more stimulus measures trumped signs of weakening fuel demand.
Supply of the North Sea crudes underpinning the Brent crude contract was set to hit a record low. Sanctions have curbed Iranian output, while an intensification of debate in Israel on whether to go to war with Iran over its nuclear work added to concerns about disruption of Middle East supply.
Brent crude rose as high as $115.11 a barrel, the highest since May 4, and by 1159 GMT was up $1.71 at $114.66. U.S. oil rose 90 cents to $93.77.
"The likelihood of some sort of intervention to stimulate economies is supporting the market," said Christopher Bellew, an oil broker at Jefferies Bache in London. "Also the North Sea, Iran and the Middle East are still a factor."

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