Oil climbs above $60 on Iran report

In London, the price of Brent North Sea crude for April delivery rallied 90 cents to $60.25 per barrel in electronic deals.

New York's main oil futures contract, light sweet crude for  delivery in April, advanced 83 cents to $60.90 per barrel in pit trading.

Government data showed that crude oil reserves surged by 3.7 million barrels in the week ending February 16 to 327.6 million barrels, the Department of  Energy said. Analysts had predicted a gain of just 1.3 million  barrels.

However, the report also showed that distillate inventories, which comprise heating oil and diesel, fell 5 million barrels to 128.3  million over a week in which much of the US was gripped by a cold snap.

Prices rose as the United States voiced disappointment after a UN watchdog report concluded that Iran  has not bowed to international demands to suspend uranium  enrichment.

'We have recently received the report. We are disappointed that  Iran has not complied with (UN) resolution 1737,' said White House national security spokesman Gordon Johndroe.

'Iran has not suspended its enrichment-related activities,' the  International Atomic Energy Agency said in a report. RTE Business