Oil nudges $30 after bomb blasts

CRUDE oil prices today looked set to climb towards $30 a barrel in London for the first time in a month after weekend bomb blasts in Saudi Arabia and Iraq.

Traders said the attack by al Qaeda suicide bombers in the Saudi capital Riyadh yesterday and yet more sabotage to an Iraqi oil pipeline sparked fresh fears about global oil supplies.

Brent futures were up 30 cents at $29.26 in the City, reflecting gains in the US where Nymex crude rose 25 cents above Friday's close to $31.10.

Rob Laughlin of GNI Man Financial said: 'These attacks just cause more problems for the oil sector. The blast in Saudi was not near to an oilfield but the fear is about what may come next, and I'm sure prices will rally as a consequence today.'

The attacks come just days after Opec's surprise decision to cut 900,000 barrels a day off its production target took effect. The cartel's next meeting is not until 4 December.