Geopolitical tensions push oil prices up

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Geopolitical tensions push oil prices up

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New York's main contract, light sweet crude for delivery in August was up by 17 cents to $88.60.

17 July,2012 10:53 am

Oil rose in Asia on Tuesday on hopes for a Chinese stimulus package and simmering geopolitical tensions following reports of a US Navy ship firing on a boat off Dubais coast, analysts said.New Yorks main contract, light sweet crude for delivery in August was up 17 cents to $88.60 and Brent North Sea crude for September delivery gained 30 cents to $103.67.Lacklustre growth figures from China leading to hopes for government intervention, coupled with the US Navy incident in the geopolitically sensitive Middle East, were supporting crude, Phillip Futures said in a report.Oil prices were lifted by hopes that signs of economic slowing will prompt stimulus measures, especially in China, and by news a US Navy vessel off the United Arab Emirates fired on a fishing boat that failed to heed warnings, the report said.US defence officials said the vessel had ignored warnings not to approach the refuelling ship USNS Rappahannock near the UAE port of Jebel Ali, and that sailors on board the American vessel feared it could pose a threat.The incident came amid tensions between Iran and western powers over Tehrans nuclear programme and threats to shut down the Strait of Hormuz global oil shipping chokepoint.