Oil rises towards $70

LONDON (Reuters) – Oil climbed towards $70 on Wednesday as U.S. warships put on a show of force off Iran’s coast, coinciding with a United Nations agency report on the Islamic republic’s nuclear programme.

Investors were also looking ahead to a weekly snapshot of gasoline and crude oil stocks in top consumer the United States, due for release at 1430 GMT.

London Brent crude, seen as a better indicator of the global market than U.S. oil, was up 20 cents at $69.72 by 1210 GMT recovering part of the previous day’s 97 cents fall.

U.S. crude was up two cents at $65.53.

Nine U.S. warships carrying 17,000 personnel entered the Gulf on Wednesday. Navy officials said it was the largest daytime assembly of ships since the 2003 Iraq war.

They added Iran had not been notified of plans to sail the ships, which include two aircraft carriers, through the Strait of Hormuz, a narrow channel in international waters off Iran’s coast and a major artery for global oil shipments.

Reuters