Petrol hike as supply concerns hit

Oil rose yesterday on US supply concerns, the slumping American dollar and mounting tensions in Pakistan and northern Iraq.

US crude traded up 59 cents to $97.21 a barrel. A US government report on Friday showed unexpectedly large draws in crude and distillate inventories in the world's top consumer.

US crude inventories are now at their lowest level in nearly three years, adding to winter supply worries that helped push oil to nearly $100 in November.

The assassination of Benazir Bhutto also triggered a flight to less risky assets, such as gold, which rose to a one-month high and prompted a further drop in the dollar.