Oil price rises above $16

Oil price rises above $16

LONDON (AFP): Crude oil prices rose to the highest points for a month on Thursday, holding firm above 16 dollars a barrel amid reports of industrial action by oil unions in Venezuela, dealers said here.

Brent crude was priced at 16.08 dollars a barrel for July delivery and 16.13 dollars for August delivery, having pushed up through the 1 6-dollar threshold for the first time since May 11 late on Wednesday.

"There were reports, subsequently confirmed, that Venezuelan oil worker unions were going to go on strike," said Salomon Smith Barney oil analyst Peter Gignoux in explanation of the price bounce.

Venezuela is the second-biggest oil exporter behind Saudi Arabia in the Organization of Petroleum Exporting Countries (OPEC) and the market feeling is that industrial action could limit supplies.