Oil rises $1 over Iraq industry fears

US CRUDE oil futures ended more than a dollar higher yesterday as analysts warned the death of Iraq’s al-Qaida leader Musab al-Zarqawi on Thursday would not end threats to Iraq’s battered oil industry.

There are other militant groups that could intensify their efforts to carry out sectarian violence and continue to destabilise oil production and shipments, the analysts said.

Traders were also covering short positions ahead of the weekend as a close watch for potential tropical storms began, with the Atlantic hurricane season under way.