Crude futures climbed Tuesday on persistent fears that the supply of heating oil would not meet global demand in the winter season. A U.S. dispute over Iran's nuclear program also drove concerns of Middle East crude supply disruptions, The Associated Press reported. The benchmark crude oil contract for August delivery on the New York Mercantile Exchange rose 42 cents to US$59.17 per barrel in modest electronic trading in Asia on Tuesday afternoon, following a three-day holiday weekend. On Friday, the contract gained more than US$2 a barrel to close at US$58.75. Heating oil rose almost a cent to US$1.726 a gallon (3.8 liters) while gasoline edged lower to US$1.655. At London's International Petroleum Exchange, August Brent futures opened 1 cent higher at US$57.95 a barrel and rose to US$58.08. It had gained 40 cents during Monday's U.S. market closure. Prices continued to be supported by concerns that North America's aging refineries will have to stretch production levels to the limit as they ramp up production of distillates, which include jet fuel and heating oil, ahead of winter. The tightness in refinery capacity coupled with strong demand leaves little margin for refinery glitches to occur.
