Oil Rises on IEA Supply Warning, Concern Israel May Attack Iran

July 1, 2008

Oil rose, extending this year's 48 percent gain, as the International Energy Agency said supplies may not keep up with demand through 2013 and ABC News reported Israel is increasingly likely to attack Iran this year.


The IEA said in a report that spare OPEC capacity will shrink by 2013, keeping the market ''tight.'' Israel may bomb Iran if OPEC's second-largest producer acquires enough uranium to build a weapon, potentially threatening Mideast supplies, ABC said, citing an unidentified Pentagon official.

''The long-term supply outlook continues to face very real constraints,'' Brad Samples, commodity analyst for Summit Energy Inc. in Louisville, Kentucky, said in an interview.