Oil prices jump again following Bin Laden video

| Friday, January 20, 2006

First it was Iran. Now it’s al-Qaida.

Oil prices jumped above $68 per barrel in trading on the New York Mercantile Exchange on Friday, Jan. 20, following threats of attacks on the U.S. by Osama Bin Laden.

That rise followed a jump earlier in the week after Iran refused to back away from its uranium enrichment program and said that any sanctions against it would result in a surge in oil prices.

Analysts said that worries about supply disruptions are having a bigger effect on the market than actual supplies, according to Forbes.

A report from the U.S. Department of Energy on Thursday, Jan. 19, showed rising domestic inventories of both oil and gasoline. But that didn’t stop the oil market from rising to its highest close in three months at the end of the day on Thursday.

Forbes reported that prices settled back down to $67.95 in midday trading, but that further jitters could easily send them upward even further.

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