Oil nears $61 on demand and Iran worries

By Richard Mably

LONDON (Reuters) - Oil prices rose a dollar to a new record near $61 Monday, driven by the resilience of world energy demand in the face of high fuel costs and worries about oil policy under Iran's new hardline president.

U.S. crude for August by 1700 GMT traded at a new high of $60.95 a barrel, up $1.11. U.S. crude is above $60 for every month to October 2006 with December 2005 setting a peak $62.35 a barrel.

London Brent set a record $59.59 a barrel, up $1.23.

"The market is testing higher to see what price levels this demand can endure," said Naohiro Niimura, vice president at the derivative products division of Japan's Mizuho Corporate Bank.

While high prices are eroding some strength from the world economy, the overall growth picture remains solid, central bankers meeting in Switzerland said at the weekend.



Nasdaq closed down because of high oil prices, but Oil stocks close higher on record crude price. Go figure!

Semper Fi

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