Monday, June 30, 2008

Oil Rises to Record on Concern Iran Supplies May Be Disrupted

(Bloomberg) -- Crude oil rose to a record above $143 a barrel on concern Israel may attack Iran over its nuclear program, disrupting supply from OPEC's second-largest producer.

Pressure on Iran to end uranium enrichment and the falling value of the U.S. dollar may drive prices to $170 a barrel, OPEC President Chakib Khelil said June 28. John Bolton, former U.S. envoy to the United Nations, said Israel would strike Iran after the U.S. presidential election in November.

``We are going beyond rhetoric at this point,'' said William Adams, managing director of JKV Global in Chicago. ``Israel's intentions are pretty clear. That's going to keep prices pretty high.''

Crude oil for August delivery rose $2.19, or 1.6 percent, to $142.40 a barrel at 9:17 a.m. on the New York Mercantile Exchange after rising to a record $143.67. The price has doubled in the past year.

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