MSNBC – Oil prices zoomed to a four-and-a-half month high above $68 a barrel Friday, rallying on supply fears tied to Iran’s tense diplomatic standoff with the West over its nuclear ambitions.
Labor unrest in oil-rich Nigeria and new threats from al-Qaida contributed to traders’ jitters at a time when global petroleum demand is high and the emergency supply cushion is thin, leaving little room in the event of an output disruption.
Analysts said speculative buying by hedge funds and commodity funds also buoyed crude futures, which settled at their highest level since Sept. 1, just days after Hurricane Katrina made landfall.
