Oil price tips over $ 70 a barrel

The new discovery will give Ghana's economy a boost.

Oil prices tipped beyond $ 70 a barrel in London, fuelling fears over supply. The prices were to earlier US data showing disappointing inventories. Brent crude roses $ 1.02 higher to $ 70.96 after breaching $ 71 a barrel.

New York sweet crude was $ 1.39 up at $ 67065. US figure showed petrol stocks were unusually low, as the US driving season starts and demand peaks. Concern over the impact of Middle East tension oil supplied was also s factor pushing up prices. A dispute between the West and Iran over its uranium enrichment project remains a source of worry.

The United Nations again tires to urge Iran to case its nuclear enrichment programme on Thursday. Also, the move by Palestinian Authority President Mahmoud Abbas to dismiss the Hamas-led coalition government and issue a state of emergency on the same day raise concerns over instability in the region. And a drop in out put as US refineries raised concerns that old refineries would not be able to meet demand exactly at the time when consumers were using more petrol over the summer holiday period.

Separately, the oil producer's group, Opec, maintained its forecast for global oil consumption for the year,

“Market fundamental supply is necessary at this time” said Opec in its monthly report. The group expects a 1.5% increase in world oil demand to 85.6 million barrels per day in 2007. Thursday's climed came day after data from the US department of energy showed that US petrol stocks were flat in the week ending 8 June well off the average typical of this time of year.” The market was expecting a very bearish report from the department of energy which did not materialise”, Michael Davies, an analyst with Sucden said in London.