Oil prices hit a one month-high of $47 (€38.25) a barrel on Tuesday as China showed no let-up in its strong import growth and traders worried that U.S. petroleum inventories had drawn down heavily due to hurricane Ivan.
Supply worries were underpinned by concerns about exports from Russian oil giant Yukos as well as rising tensions between Iran and the United Nations over Tehran's nuclear ambitions.
New York light crude futures rose 70 cents to $47.05 per barrel, after touching a high of $47.30, barely $2 from August 20's record $49.40 high.
London Brent gained 67 cents to $43.58 after climbing 46 cents on Monday when Yukos, Russia's embattled top producer, said it was trimming supply to China for the rest of this year due to a lack of funds. Oil prices have jumped more than 44 percent this year as strong demand growth in the U.S. and Asia stretches global supplies.
Chinese data yesterday showed oil imports rising 37.4 percent year-on-year in August, holding close to 40.7 percent growth seen in July.
Indian government data also showed oil firms processing 4.4 percent more crude in August than a year earlier.
OPEC oil producers are pumping at full tilt to meet demand, but their low-quality oil is proving unpopular with refiners because of its low yield of prized transport fuels.
The strong demand has magnified the impact of any threat to international supplies, such as hurricane Ivan. - (Financial Times Services)
