Crude climbs on Mideast unrest fears Crude oil hit a four-month high as the killing of the US ambassador to Libya and fears of unrest in the Middle East fuelled supply concerns in an already tight market. ICE October Brent jumped to $117.48 a barrel in Europe amid worries that this week's attack on the US consulate in Benghazi could lead to a return of violence and hit a shaky recovery in oil production in the country. The crude benchmark later rallied a second time after the US Federal Reserve's announcement of further monetary easing fuelled expectations of stronger demand for hard assets, settling up 94 cents at $116.90 a barrel. Nymex October West Texas Intermediate gained $1.30 to $98.31 a barrel. Oil prices have rallied more than 30 per cent since mid-June because of rising geopolitical tensions, better than expected demand growth and the impact of US and European sanctions on Iran's oil exports. Olivier Jakob of Swiss-based oil consultancy Petromatrix, said that the oil market was vulnerable to any production problems. "Due to the sanctions on Iran there is absolutely no room for another disruption in any oil-producing country," he said in a note to clients, adding: "When bullets and missiles start to be fired in the Middle East and north Africa region things do not always end up the way we expect them to do." A further rise in the oil price would add to pressure on Washington to tap its strategic petroleum reserve to offset the effect of supply disruptions, said analysts. Mike Wittner, global head of oil research at Société Générale, said that the White House was watching the oil price closely. "With Brent at $120 a barrel [the reserve release] becomes a strong likelihood," he said. One important factor that could persuade the US government to release its strategic reserves is likely to be the US retail petrol price. The price averaged $3.847 a gallon on September 10, rising 0.4 cents from a week before, according to the US Department of Energy. The price is inching closer to the $4 a gallon level regarded by analysts as the trigger level for any reserve release. Meanwhile, the crude market rally has forced some developing countries to pass on the price increases to consumers. On Thursday the Indian government said it would raise the price of subsidised diesel to rein in its fiscal deficit.