Oil edged up towards $71 a barrel today amid worries over Iran's nuclear dispute with the West and low gasoline stockpiles in the United States.
Benchmark, London Brent crude gained 20 cents at $70.80 a barrel earlier this morning, after hitting a fresh nine-month high of $70.90 earlier.
US crude traded up 14 cents at $65.91. Prices climbed after nine US warships put on a show of force off Iran's coast yesterday, coming at the same time as a United Nations report that said Tehran had expanded its nuclear programme.
US officials said the navy build-up was the largest daytime assembly of ships since the Iraq war began in 2003, adding Iran had not been notified of plans to sail the ships through the Strait of Hormuz.
The heightened Iran tension added to concerns about summer fuel supplies in the world's top consumer the United States, where gasoline inventories have been rising but remain below average levels ahead of summer demand.
US government data yesterday showed gasoline stockpiles increased by 1.5 million barrels last week, exceeding a 1.4 million barrels forecast. Despite record prices, year-on-year demand surged 1.2 per cent over the past four weeks.