World oil prices surge to six-month high

LONDON - THE stand-off between London and Teheran over 15 naval detainees has sent world oil prices surging to a six-month high, and analysts warn that they could rise further.

Crude prices hit a high of US$69 (S$105) a barrel this week, as traders fretted over escalating tensions between major crude supplier Iran and the West, a week after the stand-off started with the seizure of the British servicemen at gunpoint last Friday.

'It wouldn't surprise me if we saw US$70...or beyond,' said senior international economist Simon Hayley of Capital Economics.

In London trade on Thursday, the price of Brent North Sea crude for May settled near US$68.

New York's main oil futures contract, light sweet crude for delivery in May, surged US$1.95 to close at US$66.03 a barrel.

Crude futures had on Tuesday soared to US$69 in London and US$68.09 in New York - levels last seen in early September - on rumours of a military conflict in Iran. They fell back after the talk was seen to be unfounded.

But in the last couple of days, prices have again risen strongly after Britain froze ties with Iran, the world's fourth-largest producer of crude. This was in response to the Islamic country's refusal to release the 15 British sailors.