Bomb puts price of oil in a spin

OIL prices were volatile today after renewed violence in the Middle East stoked fears of a global fuel shortage.

News of the bus bombing in Israel wiped out an overnight fall in crude, while Iran increased the tension by adding to yesterday's threat of an export ban, following Iraq.

Iranian Oil Minister Bijan Zanganeh initially declared his willingness to turn off exports if other Islamic producers agreed.

The oil price was further fuelled by forecasts from Western watchdog the International Energy Agency that global demand for oil would resume climbing in the spring following three successive quarters of decline.

Meanwhile, oilfields were closed and exports ground to a halt from Venezuela's strike-bound State oil company.

Brent crude for May delivery fell four cents a barrel to $26.04, still reacting to overnight news of huge stockpiles in the US.