Oil jumps back to 44.32 despite victory for Yukos

Prices have rallied more than 30 per cent this year as rapid demand growth, especially in the US and China, has left little leeway for any supply disruptions. Consumption is accelerating at its fastest pace in more than 20 years.

Prices rose even though an official at Russia8217;s state railways said it expected no disruptions in Yukos8217; oil and refined oil products exports after August 10.

Yukos continues to battle bankruptcy due to a multi-billion-dollar tax debt case, which threatens to bring its day-to-day operations to a halt, including oil exports. Yukos, Russia8217;s biggest oil-exporting firm, pumps 1.7 million bpd of crude, or 2 per cent of global supply.

8216;8216;No supplies will be stopped after August 10. We will continue to work as we have been working in the past because it is in the state8217;s interest,8217;8217; Marina Kovshova, head of Russian state railways8217; marketing department, said.

Yukos shares shot up on Monday after a late Friday court ruling against bailiffs8217; seizure of its main oil unit, deemed the firm8217;s biggest victory.