Oil rises above $75 on US stock fall, Iran tension

[NNN0LHI]

http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-07-13T054547Z_01_SP327883_RTRUKOC_0_US-MARKETS-OIL.xml&archived=False

SYDNEY (Reuters) - Oil surged near a record high on Thursday after a sharp fall in U.S. crude stocks, forecasts of accelerating demand growth from 2007 and an impasse in the diplomatic stand-off between Iran and the West.

U.S. crude futures climbed 42 cents to $75.37 a barrel by 0539 GMT, after a 79-cent rally on Wednesday. London Brent jumped 55 cents to $74.94 a barrel.

"The dramatic decrease in U.S. inventories is propping up the market and we're seeing an extension of the bullish sentiment which followed the numbers on Wednesday," said Dariusz Kowalczyk, senior investment strategist at CFC Securities in Hong Kong.

"But remember that the decrease is due entirely to lower imports, which can be very volatile from week to week," he said.

[skids]

1. And that was before Beirut. n/t

[McCamy Taylor]

2. Oh boy, more money in GOP coffers.

[Mojambo]

3. That reminds me. I have to pick up some more lube. n/t