Crude oil gains on geopolitical worries

Crude oil prices were as high Monday as they have been all year as tensions continue between Iran and the West over the capture last week of 15 British sailors. However, some analysts feel that the price would be going up even without the current political situation based on recent OPEC production cuts, higher demand, and slow growth in non-OPEC output.

Brent crude May deliveries gained $1.15 to $64.33 per barrel in late afternoon trade on the Intercontinental Exchange in London. West Texas Intermediate crude May contracts were 65 cents higher, to $62.93 per barrel early in the afternoon on the New York Mercantile Exchange, its highest prices since the day after Christmas last year.

Around noon in New York, Nymex gasoline was 5.5 cents higher to $2.0535 per gallon, their highest level since September 2006, even though some analysts believe that traders could be overreacting to the beginning of the summer driving season and recent refinery shutdowns. Heating oil futures saw gains as well, adding almost 6 cents to $1.7696 per gallon, while natural gas dropped 3.2 cents to $7.237 per 1,000 cubic feet.