Oil prices rose to near $116 a barrel on Tuesday as investors said strong seasonal demand and concerns over Irans nuclear programme outweighed worries over eurozone sovereign debt as a key Italian parliamentary vote loomed.Reuters reported that Brent crude futures were up by $1.28 to $115.84 a barrel by 1453 GMT. US crude was up by $1.02 at $96.54 a barrel."There are several factors at play. Some are offsetting each other, but the general trend is to the upside," an energy analyst at Commerzbank in Frankfurt, Carsten Fritsch, said.He said, "We have a temporary solution to the Greek political crisis, strong seasonal demand for heating oil, low gasoil stockpiles in Europe, low distillate stockpiles in the US, and China becoming a net diesel importer in November."There is also the geopolitical risk from the Iran nuclear programme - all these factors are supporting oil prices."Irans dispute with the West intensified ahead of a report from the UNs International Atomic Energy Agency that is expected to show its nuclear programme is being geared towards weapons manufacture.On the demand side, Chinas top refineries plan to raise their crude oil throughput in November to the highest level in a year as state oil firms ramp up operations amid domestic diesel shortages and the restart of a key plant after maintenance.In its annual World Oil Outlook, the Organisation of Petroleum Exporting Countries raised its forecast for world oil demand in 2015 to 92.9 million barrels per day, while adding that the risk was to the downside."Its fundamentals that are driving us higher," co-founder of Hudson Capital Group in the US, Todd Gross, said."Petrol supplies are low in certain parts of the world. Everything is now backward-dated from petrol to crude, and were heading into the biggest demand month of the year - global demand is one million to two million barrels per day higher in December than it is in October. Oil is driving its own bus," he said.Gross also commented on the market impact from the upcoming IAEA report on Iran, "Its a very dangerous situation, and you cant blame prices for rising if traders think something might happen in the next six months."Oil rallied as the Italian parliament began a debate on ratifying a financing bill ahead of a crucial vote that could determine whether Prime Minister Silvio Berlusconi will survive."Oil is being pushed around quite a bit as we come up to the vote," said Rob Montefusco, a trader at Sucden Financial in London. "The euro hit a session high and oil has pushed back up as the euro has accelerated."Energy analyst at Standard Bank, Mr. James Zhang, said the market had hopes Berlusconi would be ousted in favour of a technocrat government, which is thought more likely to take control of the fiscal situation in Italy.In the short term, he expects oil to rally as "the technical break-out in Brent will inevitably attract fresh buying and prompt short covering".Oil prices were also supported by threatened strike action in Brazil, where workers at state oil company, Petrobras, said they would strike on November 16 to demand safer working conditions and better pay.A full-blown work stoppage could force Petrobras to boost crude imports to keep refineries running and trim exports, putting upward pressure on crude oil prices.An oil analyst at Global Risk Management, Mr. Michael Poulsen, said that technically, Brent was at "dangerous levels" and a further upward move could not be ruled out.
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