Crude prices jump on IEA report, Iran concerns

Crude oil prices were higher again Tuesday on supply and geopolitical concerns.

August contracts for West Texas Intermediate crude added 97 cents to $140.97 per barrel at the close of floor trade on the New York Mercantile Exchange after going as high as $143.33 earlier in the session, while Brent crude gained 68 cents to $140.54 per barrel.

The gains came after the release of a report form the International Energy Agency which said that even though high oil prices have reduced demand, supplies will remain tight.

The report estimated that supply will top demand by just 2 million barrels per day.

Also according to the IEA report, 90 percent of demand growth is now centered in Asia, South America and the Middle East at a time when non-OPEC oil producers will continue to under produce for at least the next five years.

Continuing worries about the situation in the Middle East also pushed prices higher after a broadcast news report that a senior Pentagon official said that the likelihood of an attack on Iran by Israel before the end of the year is rising.

Such an attack could disrupt oil supplies in the region.

Nymex August gasoline futures added 1 cent to $3.51 per gallon while August heating oil was up 3 cents to $3.94 per gallon and August natural gas gained 15 cents to $13.50 pr 1,000 square feet.

Meanwhile, the at-the-pump price for gasoline in the US was up 0.1 cent overnight to a national average of $4.087 per gallon.