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NEW YORK - Oil prices rose today after Saudi Arabia said it foiled an Al-Qaeda-linked plot to attack the kingdom's oil facilities, rekindling concerns over the vulnerability of world energy supplies.
The news came against the backdrop of expectations that the United States will face a petrol inventory
crunch when drivers hit the roads this summer vacation season after a slew of refinery outages slashed stockpiles.
London Brent crude , currently seen as more representative of global oil prices, gained 76 cents to US$68.41 a barrel. US crude settled up US$1.40 to US$66.46.
Opec kingpin Saudi Arabia said it arrested 170 people suspected in a plot to attack oil facilities and military bases, including some trainee pilots preparing for suicide operations.
"One of their main targets was to carry out suicide attacks against public figures and oil installations and to target military bases inside and outside (the country)," according to a Saudi Interior Ministry statement.
Oil dealers said the news triggered a quick run-up in crude futures, after prices had started the day in negative territory.
"We bottomed out around the time the Saudi news hit and we've been working our way up since then," said Eric Wittenauer, analyst at A.G. Edwards in Chicago. "With the geopolitical tension, especially in the producer regions, it's hard to be short going into the weekend."
Prices have also been supported by unplanned outages and refinery maintenance in the United States, including a fire Thursday at a key oil refinery in Louisiana operated by Marathon Oil .
Low production from US refineries due to maintenance and unplanned repairs have cut the nation's stockpiles nearly 15 per cent since early February.
Oil had come under pressure on Thursday after Iran's chief negotiator in its nuclear standoff with the West, Ali Larijani, said Tehran and the European Union had neared unity in some areas of their talks.
A dispute between the West and Iran over its nuclear programme has dragged on for nearly a year, propping up oil prices over possible supply disruptions.
"Certainly the improvement of the Iran situation is one of the factors that has helped put some pressure on oil," said Tetsu Emori, chief strategist at Mitsui Bussan Futures Ltd.
Larijani said on Thursday that Tehran and the EU -- due to meet again in two weeks -- were nearing "a united view" and that new ideas had been raised to break an impasse.
- REUTERS
