OIL prices seesawed yesterday on investors' concern about potential supply disruptions stemming from the dispute between the West and Iran over that country's nuclear program.

President Barack Obama and Israeli Prime Minister Benjamin Netanyahu were scheduled to meet yesterday to discuss the issue. Obama said that the US and Israel agree diplomacy is the best way to resolve the crisis but that the US will consider all options.

Benchmark crude rose 2 cents to finish at US$106.72 per barrel on the New York Mercantile Exchange. It hit a day high of US$107.42 and a low of US$105.50 a barrel earlier in the day.

Brent crude rose 15 cents to end at US$123.80 per barrel in London.

The United States, Europe and other nations fear that Iran may be building a nuclear weapon. Iran, the world's third-largest oil exporter, denies the charge.

Oil trader Stephen Schork said the current price of oil reflects investors' fear of military conflict. Analysts expect prices to continue to climb, but there are indications some investors may sell high oil prices appear to slow economic growth in some countries.

Prices also were affected by a temporary closure of a Midwest pipeline and a forecast for slower economic growth from China.

Enbridge Inc. has closed a 467-mile (751-kilometer) oil pipeline that carries a nominal capacity of 317,000 barrels per day from Wisconsin to Indiana because of an accident. A company spokesman said that a portion of the line is expected to reopen Wednesday evening and the rest should be open by Thursday.

In other energy trading, natural gas fell 13 cents to finish at US$2.36 per 1,000 cubic feet, weighed down by weak demand during the mild winter. Heating oil rose 2 cents to end at US$3.22 per gallon and gasoline futures fell about a cent to finish at US$3.26 per gallon.
 

Source:shanghaidaily