Rises amid Iran nuclear tensions

13 February 2007

Slight gains have been experienced in the oil price market, with London Brent crude rising 21 cents to $56.81 (£29.13) per barrel and US crude adding eight cents to settle at $57.89.

Rises come amid tension over Iran's nuclear programme, despite European Union leaders saying that the country was showing "new ambition" to overcome disagreements with the west.

The officials chose to implement sanctions to keep some pressure on Iran however, aiming to make the country suspend its attempts to make nuclear fuel.

Western nations consider the efforts to be a disguised pursuit of atomic weapons although Iran states that it is trying to generate electricity, not create nuclear missiles.

Head of the International Atomic Energy Agency, Mohamed El-Baradei, said: "Sanctions are an important tool, but sanctions alone will not solve the issue."

Meanwhile, oil prices are likely to have been affected by the recent cold weather conditions, which are likely to have heightened demand.

Additionally, analysts believe that oil supplies which are created by non-members of the Organisation of Petroleum Exporting Countries are not rising as quickly as expected, however output from Britain is set to rise this year for the first time since 1999, Reuters reports.