Oil prices climbed modestly higher in Wednesday trading as eyes were focused on a powerful cyclone heading towards the Persian Gulf.
On the New York Mercantile Exchange, the price of light, sweet crude for July delivery was up 15 cents US at $65.76 US a barrel.
Cyclone Gonu is forecast to make land in southeastern Iran late Wednesday or early Thursday. Rough seas are forecast in the Straits of Hormuz, through which roughly 40 per cent of the world's oil is shipped.
"Uncertainty about the cyclone in the Middle East is holding the crude oil futures market steady, with prices fluctuating a little as traders watch storm developments," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
The small price increase also followed the release of weekly oil and gasoline supply figures from the U.S. government.
The U.S. federal Energy Department said gasoline supplies rose for a fifth consecutive week, adding 3.5 million barrels to hit 201.5 million barrels. Analysts polled by Dow Jones had expected an increase of 1.5 million barrels.
Crude oil supplies rose 100,000 barrels to 342.2 million. Analysts had expected supplies to rise by 120,000 barrels.
With files from the Associated Press
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