Lebanon violence triggers oil hike

New Delhi: Crude oil rose above $78 per barrel in New York for the first time, as violence escalated in Lebanon, reports CNBC-TV18.

Israeli forces entered Lebanon a day after Hezbollah captured two soldiers, increasing concerns that oil supplies from nearby countries may be disrupted.

Also, a Nigerian newspaper report that rebels had attacked pipelines, which was later denied by the owner, spiked the prices.

In after hours access trading, crude is trading at USD 78.00 per barrel, up by $1.30.

Victor Shum, Senior VP of Purvin & Gertz believes that crude is likely to touch USD 80/bbl in the short-term. He also says that the West Asia tension will keep crude prices high, alongwith hurricanes in the Gulf of Mexico.