Crude higher against Iran tensions

The benchmark crude for November delivery added 13 cents to $ 66.02 a barrel on the New York Mercantile Exchange (Nymex). In London Brent North Sea rose 29 cents to $ 65.11 on the ICE.

Oil prices fell much of the week before the government reports that showed that America still has a huge surplus of oil at the end of the summer season, in which drivers use their car more.

But the contracts were able to recover on Friday when President Barack Obama and the presidents of France and Britain lashed out at Iran, demanding clarity about its nuclear program.

Iran breaches laws that all nations should abide by, Obama said at the beginning of the economic summit G20 in Pittsburgh.

Iran is the second largest oil producer in OPEC after Saudi Arabia and its southern border lies along the Strait of Hormuz, where the huge freighters carry the Gulf Arab oil to the world.

Usually any friction with Iran boosts oil prices. Despite this, the effect was relatively moderate on Friday by the lack of demand.

Meanwhile, Bernanke said he remains dedicated to supporting a costly program to encourage term lending backed securities assets (TALF by its initials in English). The program provides loans to investors and is designed to encourage bank lending, but is considered an element of inflation and led investors into commodities like oil.

In other contributions the Nymex, gasoline for October delivery fell almost two cents to $ 1.6205 a gallon, heating oil for October delivery fell less than a penny to $ 1.6771 a gallon. Natural gas added 3 cents to $ 3.985 per 1,000 cubic feet.

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The Associated Press journalist Alex Kennedy contributed to this report from Singapore.

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