Crude rises on revived supply disruption fears

SINGAPORE Sun Aug 12, 2012 7:49pm EDT

An attendant prepares to refuel a car at a petrol station in Rome January 4, 2012. REUTERS/Max Rossi

An attendant prepares to refuel a car at a petrol station in Rome January 4, 2012.

Credit: Reuters/Max Rossi

SINGAPORE (Reuters) - Crude futures rose in early Asian trade on Monday on renewed fears of supply disruption as Israel's latest comments on stopping Iran's disputed nuclear program stoked tension in the region.

U.S. oil rose 37 cents to $93.24 a barrel by 7.19 p.m. EDT, recouping most of the previous session's losses. Brent crude gained 29 cents to $113.24, after settling 27 cents lower at $112.95.

FUNDAMENTALS

Prime Minister Benjamin Netanyahu said on Sunday that most threats to Israel's security were "dwarfed" by the prospect of Iran obtaining nuclear weaponry, which local media reports charged Tehran had stepped up its efforts to achieve.

Syrian rebels fighting to oust President Bashar al-Assad need the protection of no-fly zones and safe havens patrolled by foreign forces near the borders with Jordan and Turkey, a Syrian opposition leader said.

Egypt's Islamist President Mohamed Mursi dismissed Cairo's two top generals and quashed a military order that had curbed the new leader's powers, in a move that further stamped his authority on the country and its army.

Iraq's Kurdistan region has delivered 116,000 barrels per day of crude (bpd) since it restarted oil pumping on August 7, Deputy Prime Minister Hussein al-Shahristani said on Sunday, adding the amount was below the 175,000 bpd agreed.

An oil tanker collided with a U.S. Navy ship near the Strait of Hormuz on Sunday but no one was hurt and shipping traffic in the waterway, through which 40 percent of the world's seaborne oil exports pass, was not affected, officials said.

MARKETS NEWS

The euro posted its first weekly drop against the dollar and yen in three weeks on Friday as investors refocused on the uncertainty surrounding possible European Central Bank action to contain the debt crisis and deteriorating growth in the euro zone. <USD/>

The Standard & Poor's 500 finished slightly higher on Friday to run its streak to six straight sessions, but activity was light and gains were slight as the market enters a seasonally slow period. .N

(Reporting by Manash Goswami; Editing by Richard Pullin)

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