Oil Prices Rebound Slightly
Oil prices rose on Friday having endured a roller-coaster ride the previous day following a report, later denied, that the United States and Britain had agreed to supply the market with crude reserves.
New York's main contract, light sweet crude for delivery in April, rose 14 cents to $105.25 a barrel.
Brent North Sea crude for May gained 17 cents to $122.77, a day after prices in London briefly tumbled four dollars on reports the United States and Britain had agreed on a release of emergency crude stocks to help cool oil prices.
The White House confirmed the issue was discussed by U.S. President Barack Obama and British Prime Minister David Cameron, but denied that there was a pact.
"Oil has been rebounding since that denial," Victor Shum, an analyst at Purvin and Gertz energy consultants, told AFP.
The week's trading has seen investors weigh concerns over Middle East supply disruptions and a surge in US crude oil stockpiles.
The International Energy Agency on Wednesday said that Iran would lose about 45 percent of its oil exports -- 800,000 barrels a day -- from the middle of this year due to sanctions and pressures on its trading partners.
"The situation with Iran is likely to get worse before it gets better," said Jason Schenker of Prestige Economics, predicting prices would head higher over the coming months.
"Saudi Arabia is cranking out production" to replace lost Iran crude supplies, he said.
"But spare capacity is becoming increasingly limited, and inventories could fall globally."
Source: Agence France Presse
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