Reply #29: Oil surges to $66

[54anickel]

http://biz.yahoo.com/rb/050811/markets_oil.html?.v=7

LONDON (Reuters) - Oil charged to $66 to a new high on Thursday as Iran's nuclear work put it at odds with the United Nation's atomic watchdog and more U.S. refinery snags threatened gasoline supplies to the world's biggest consumer.

Earlier the International Energy Agency said non-OPEC output was falling short of expectations, compounding supply concerns.

U.S. light sweet crude was up $1 at $65.90 at 1540 GMT after hitting a record-high of $66.00. London Brent was up $1.55 at $65.54 after touching $65.66.

"The presence of significant headline risk, most particularly from Iran's international relations, the Atlantic hurricane season and from tightness in refining, is continuing to support prices at higher levels," said Barclays Capital.

In Vienna, the board of governors of the International Atomic Energy Agency approved a resolution demanding that Iran suspend all nuclear activities, a diplomat said.

EU diplomats said if OPEC's second biggest producer failed to comply with the resolution they would push for Iran to be referred to the UN Security Council for punitive action.

REFINERY STRAIN

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