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.