Oil Trades Near Two-Week High on Oman Cyclone, Nigeria Risks

Crude oil was little changed near a two-week high in New York after rising yesterday on risks to supplies from the Middle East and Nigeria.
Oman evacuated about 7,000 people from areas in the path of a cyclone heading toward the coast, Agence-France Presse reported. Brent crude oil climbed to $70.40 a barrel yesterday on the risk to tankers operating in the Gulf and the threat of further strikes in Nigeria, Africa's biggest producer.
``Global market forces are playing on the U.S. crude markets again,'' said Tom Hartmann, commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California. ``With Brent back above $70 we can't be too far behind.''
Crude oil for July delivery was at $66.08 a barrel, down 13 cents, in after-hours electronic trading on the New York Mercantile Exchange at 7:42 a.m. in Singapore.
The contract rose $1.13, or 1.7 percent, to $66.21 yesterday, the highest close since May 21. Futures touched $66.48, the highest intraday price since April 30.
``There's a storm in the Arabian sea that may threaten shipments,'' Phil Flynn, vice president of risk management at Alaron Trading Corp. in Chicago, said yesterday. ``There are storms, both geopolitical and weather related, that will keep prices rising.''
Tropical Cyclone Gonu strengthened into a Category Four storm with 150 mile-per-hour winds in the Arabian Sea and is forecast to head for Oman, the U.S. Navy said yesterday. The cyclone is moving northwest at 11 miles per hour on a path Navy forecasters expect will take it toward the Gulf of Oman, an important shipping lane for tankers carrying oil from the Persian Gulf.