Brent crude trades above $68 per barrel

Oil prices were up on Friday as the standoff between Iran and the UK over the capture of 15 British sailors by Iran, which claims that the sailors were in Iranian waters, continues. The UK holds that the sailors were in Iraqi waters. Comments by British Prime Minister Tony Blair that warned Iran of “continued isolation” if they don’t release the sailors only made the markets more nervous that oil supplies could be interrupted. Iran sits on the Strait of Hormuz, through which the US Energy Information Agency says about 17 million barrels of crude oil a day are shipped.

At midday in New York, West Texas Intermediate May contracts were up 15 cents, trading at $66.18 per barrel on the New York Mercantile Exchange. Earlier in the session, prices had been a bit lower. Meanwhile, May delivery Brent crude added 66 cents to $68.54 per barrel on the Intercontinental Exchange in London.

Nymex April gasoline futures were 1.17 cents lower to $2.0622 per gallon, but Nymex April heating oil was up 0.28 cents to $1.8800 per gallon. With April contracts expiring at the end of the session, May gasoline was also 1.17 cents lower to $2.0622 per gallon, while May heating oil added 0.68 cents to $1.8851 per gallon. Natural gas gained 1 cent to $7.709 per 1,000 cubic feet.