World oil prices rebounded sharply today as concerns over supply disruptions in Iran and Nigeria outweighed data showing weak US energy demand.
New York's main contract, West Texas Intermediate crude for delivery in February, jumped $1.14 to $102.01 a barrel. Brent North Sea crude for February gained $1.36 to $113.60 in London deals.
Analysts said that Iran's threat to disrupt shipping through the Strait of Hormuz is keeping markets on edge, particularly Asian markets. Western powers are moving to tighten sanctions on Iran, accusing the country of trying to develop nuclear weapons.
Tehran has denied the allegations, saying its nuclear programme is peaceful and has threatened to block the strategic Strait of Hormuz if fresh sanctions are imposed, a move sure to escalate tensions.
Prices also got support from rising European equity markets and the weaker dollar, in the wake of successful bond auctions in Spain and Italy.
Oil prices fell yesterday after news of a surprisingly big increase in US crude oil reserves and slowing economic growth in Germany. US crude stockpiles jumped by five million barrels last week in the world's biggest oil consumer - five times the amount forecast by analysts.
