Oil prices rise on eve of Iran nuclear report

AFP, Tuesday 8 Nov 2011

Markets keep eye on European debt crisis and global tensions ahead of UN's Iranian atomic bomb findings

Oil prices rose on Tuesday as markets focused on the euro zone debt crisis and geopolitical tensions surrounding major crude producer Iran on the eve of a UN report on the country's nuclear ambitions.

New York's main contract, light sweet crude for delivery in December, climbed 63 cents to US$96.15 a barrel.
Brent North Sea crude for December climbed $1.11 to $115.67 in London deals.
Oil futures rose in line with European stock markets, as investors hoped for a positive outcome to the eurozone debt crisis despite acute concern over fallout from Italy's debt mountain.
Traders were also looking ahead to Wednesday, when a UN report is expected to provide new evidence that Iran is seeking the atomic bomb.
"Leaked information suggests that Iran is seen as geared to developing nuclear weapons, which could increase the risk of a military attack on Iran's nuclear facilities," analysts at Commerzbank said in a note on Tuesday.
"We believe this justifies a certain risk premium on the price of oil."
Oil prices were also winning support from unrest in Nigeria, analysts said.
The African producer and exporter of oil was on high alert after the United States warned of fresh attacks following a wave of deadly blasts claimed by Islamists that killed 150 people in the northeast of the country.
Friday's attacks in the city of Damaturu were among the deadliest ever carried out by Boko Haram, an Islamist sect based in the north of Africa's most populous country.
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