Oil stays near $75 on political worries

Oil held near record-highs above $75 a barrel today on fears over Iran's nuclear programme and expectations of a drop in US gasoline…

Oil held near record-highs above $75 a barrel today on fears over Iran's nuclear programme and expectations of a drop in US gasoline stockpiles as the summer season gets into gear.

US crude for August gained 4 cents to $75.23 a barrel by 7.30am, close to yesterday's all-time peak of $75.40 that was just past its previous peak in April.

Oil prices embarked on a sustained rally two weeks ago, climbing more than $6 on geopolitical concerns, a shipping disruption for US refiners and signs that high pump prices have not deterred drivers in the world's largest energy user.

US government data due at 3.30pm Irish time will provide the next clues on the health of demand in the United States, whose gasoline consumption accounts for over a tenth of world oil use.

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Oil brokers also said yesterday's price surge may have been the result of a big shift of fund money into oil, which has rallied more than 22 per cent since the start of the year.

Supply concerns raised by the row between key oil producer Iran and the West over Tehran's atomic ambitions, along with a partial loss of Nigerian supply, had helped drive prices to the previous record at $75.35 in April.