Oil prices rise amid eurozone, Korea tensions

Thursday, 25 November 2010 00:36 -     - {{hitsCtrl.values.hits}}

LONDON, (AFP) - World oil prices rose on Wednesday, before the latest US energy report, with traders on tenterhooks over the eurozone debt crisis and simmering tensions on the Korean peninsula, analysts said.

Brent North Sea crude for delivery in January added 46 cents to 83.71 dollars a barrel in London morning trade.

New York’s main contract, light sweet crude for January, firmed 32 cents to 81.57 dollars.

Prices fell on Tuesday amid a broader market sell-off as traders feared that a spike in tensions between North and South Korea could impact global trade.

“The oil market is under pressure, with crude oil prices consolidating around the 82 dollars-per-barrel area,” said Sucden analyst Myrto Sokou.

“Investors remain sceptical that Ireland will not be the last of the eurozone’s financial instabilities while the main attention has switched to the fragilities of Portugal and Spain.

“It seems that the eurozone debt crisis has deepened, and in addition the political tensions in the Korean peninsula added further ‘dust’ in the uncertain geopolitical conditions.”She added: “However, for the rest of the week, volumes might be light with choppy trading conditions due to the US Thanksgiving holiday (on Thursday).