Crude oil gains on political, climatological worries

Crude oil prices were higher on Monday after new strike threats over fuel taxes in Nigeria. The threats came even though militants had proposed a one-month cease-fire in the ongoing violence there. In addition, Iran’s highest religious authority made remarks reaffirming that his nation will not halt in its program to develop nuclear technology. Also worrying was a cyclone in the Arabian Sea that was expected to miss Saudi Arabia’s major oil facilities but could still cause damage to facilities in Oman.

July contracts for Brent crude added $1.30 to $70.37 per barrel on the Intercontinental Exchange in London, while West Texas Intermediate crude for July delivery was $1.18 higher to $66.26 per barrel on the New York Mercantile Exchange. Nymex July gasoline, however, dropped 1 cent to $2.24 per gallon. Nymex July heating oil added 4 cents to $1.96 per gallon, while natural gas gained 31 cents to $8.19 per million British thermal units.