Oil Rises to $70 in New York on Gasoline Demand, Iran Standoff [View All]

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Oil Rises to $70 in New York on Gasoline Demand, Iran Standoff

April 17 (Bloomberg) -- Crude oil topped $70 a barrel in New York, nearing a record, on concern changes to U.S. gasoline content will disrupt supplies as the peak driving season begins.

Gasoline is trading close to a six-month high as U.S. refineries replace a chemical additive with ethanol to reduce environmental damage. Oil also gained because of Iran's defiance of United Nations calls to stop enriching uranium.

``There are two reasons for the increase, one is the physical limits in the oil products and then the tensions in the Middle East,'' said Naohiro Niimura, vice president of derivatives at Mizuho Corporate Bank Ltd. in Tokyo. ``The tensions have the funds buying back into the energy side.''

Crude oil for May delivery rose as much as 68 cents, or 1 percent, to $70 barrel on the New York Mercantile Exchange in after-hours electronic trading. That was the highest since Aug. 31. The contract traded at $69.78 at 12:39 p.m. in Singapore. Prices have climbed 15 percent this year.