(Adds comment, updates prices)
By Santosh Menon
LONDON, Jan 14 (Reuters) - Oil rose to nearly $94 a barrel
on Monday, halting a three-day losing streak, amid a wider
commodities rally as the dollar's weakness and tensions
involving Iran countered worries of a global economic downturn.
U.S. light crude for February delivery <CLc1> rose $1.15 to
$93.84 a barrel by 1453 GMT, off highs of $94.43 earlier in the
session. London Brent crude <LCOc1> was $1.40 higher at $92.47 a
barrel.
Oil, which hit a record high of $100.09 on Jan. 3, has since
mostly fallen on growing fears of a possible economic recession
in the United States, which could curb demand in the world's
biggest oil consumer.
Monday saw rising prices across the metals. Gold and
platinum surged to record highs, silver touched a 27-year peak
and copper prices also rallied, partly helped by the dollar's
slide to seven-week lows against the yen and the euro.
"I think strong equities and strong gold have helped oil
move up today," said Christopher Bellew, senior vice-president
at Bache Commodities.
Analysts said tensions between Iran and the United States as
well as violence in Nigeria had rekindled worries of potential
oil supply disruption and also boosted prices.
U.S. President George W. Bush accused Iran on Sunday of
threatening global security by backing militants and urged his
Gulf Arab allies to confront the issue [].
The verbal exchanges between Washington and Tehran have
rekindled worries that Iran, the world's fourth-largest crude
exporter, could cut oil exports to retaliate against U.S.
pressure over its nuclear programme.
In Nigeria, militants fighting for regional control of the
country's oil-producing south detonated a remote-controlled bomb
on an oil tanker on Friday, causing a big fire.
GEOPOLITICS
It was the second rebel attack on Africa's largest oil
industry in a week. Militant raids since 2006 have knocked out a
fifth of the country's oil output capacity.
Analysts said the oil market was caught between the opposing
influences of short-term tight supply and downside risks to oil
demand from a slowing economy, with geopolitical events and
speculators driving prices in the near-term.
"The market is still finding its view on what's going to
happen over the course of the year," said Simon Wardell, analyst
at Global Insight.
The run-up to the OPEC meeting on Feb. 1 is expected to be
closely watched for direction, analysts said.
The Organization of the Petroleum Exporting Countries said
on Monday it would raise oil output if needed at meetings on
Feb. 1 and March 5, but supply was enough for now and
speculation was the biggest factor driving prices. [ID:
nL14193128}
Crude speculators on the New York Mercantile Exchange
boosted net long positions to a two-month high in the week to
Jan. 8, as oil prices struck a record $100 a barrel.
(Additional reporting by Fayen Wong in Sydney and Alex Lawler in
London; editing by Anthony Barker)
