NEW YORK--Crude oil futures prices were higher Tuesday, with North Sea Brent firming on concerns over tightening supplies due to a strike in Norway and the impending Europe Union embargo on Iranian crude oil imports.
U.S. benchmark crude was modestly higher after a private survey reported U.S. home prices fell in April by less than expected.
August North Sea Brent crude oil futures on the Intercontinental Exchange were up $1.10 a barrel, or 1.2%, at $92.11 a barrel.
Traders said the gain was sparked by news of widening impact of a strike by Norwegian oil workers. Analysts at JP Morgan warned that the strike "has the potential to tighten the European light sweet crude market, particularly as refinery runs increase following the spring maintenance period."
Brent also gained support from news that South Korea said it would halt its import of Iranian crude oil indefinitely as of July 1.
Matt Smith, analyst at Summit Energy, said the 250,000 barrels a day of imports would need to be covered by other suppliers, and was therefore having a knock-on effect for Brent prices. The move comes amid stricter sanctions on Iran set to go into effect Sunday, including a ban of Iranian oil imports by E.U. nations.
Saudi Arabia and other Gulf nations have sharply boosted output to cover potential volumes lost due to the sanctions, but traders said nervousness persists as the enforcement date nears.
August light, sweet crude oil futures on the New York Mercantile Exchange were trading 42 cents higher, at $79.63 a barrel. Prices had been weaker earlier on news that Tropical Storm Debby wouldn't have a lasting affect on Gulf oil and gas operations and some companies which had shut-in some 600,000 barrels a day of output as a precaution were preparing to restart flows.
Nymex crude turned higher as S&P's Case-Shiller report showed U.S. home prices rose 1.3% in April, reversing seven months of declines.
Despite the modest turn higher, traders said U.S. crude prices remain under pressure from crude oil stockpiles that are at their highest level since July 1990.
July-delivery heating oil and gasoline futures were stronger ahead of contract expiration at Friday's settlement.
July heating oil was trading up 2.1 cents at $2.5595 a gallon, while July reformulated gasoline blendstock futures were 0.17 cent higher, at $2.6475 a gallon.
