nationalisation of oil companies
World oil prices approached $US74 a barrel overnight as Bolivia's move to nationalise its energy industry added to jitters over Iran's nuclear drive, traders said.
New York's main contract, light sweet crude for delivery in June, surged $US1.82 to close at $US73.70. It is back within sight of its record high reached a week ago of $US75.35.
In London, the price of Brent North Sea crude for June delivery added $US1.87 to finish at $US73.89.
James Williams, an economist at WTRG Economics, said the oil market remained consumed about jitters over Iran with the US and its allies pushing for UN sanctions against the major crude producer.
"When you add that on top of the loss of a fifth of Nigerian production, Bolivia's move toward the Venezuelan model of total control over oil produced by foreign companies, and the (US) summer driving season staring us in the face, it is easier for prices to go up than down," he said.
Bolivia's left-wing president, Evo Morales, threw a new dimension into oil market fears on Monday by issuing a formal decree to nationalise crude and natural gas resources.
The measure is expected to affect about 20 foreign oil companies, including Spain's Repsol, Petrobras of Brazil, Britain's BP and British Gas and French group Total.
As army troops took control of oilfields, Morales said foreign energy companies would have to sign new contracts with Bolivia's state-run oil firm within 180 days.
