A theatrical 'gift'

A brief flurry of trading activity saw oil prices drop briefly, then firm, after Iran's President Mahmoud Ahmadinejad announced the release of 15 captive British sailors.

In a piece of theatre, akin to that frequently provided by Venezuela's Hugo Chavez, the Iranian president got the media's attention with his surprise gift to the British people. For a while the oil market paid attention too, with the immediate response being a drop of around 90 cents on US oil prices; London's Brent Crude dropped 73 cents.

After the surprise wore off, market forces played their part, firming prices. One influencing factor is the threat - outlined by the International Energy Agency - that world oil stocks are heading for a 10-year low. This has been countered slightly by a larger than expected increase in US holdings over the last week, but the issue remains at the forefront of OECD energy concerns and is likely to continue to impact on prices.

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