By Ayesha Daya
Aug. 25 (Bloomberg) -- Crude oil rose after Russian lawmakers voted to recognize the independence of two breakaway Georgian regions, raising fears of new tensions in the area.
Crude oil for October delivery rose 53 cents, or 0.5 percent, to $115.12 a barrel on the New York Mercantile Exchange at 9:31 a.m. London time.
The Russian Parliament's Upper House voted unanimously to recognize the independence of South Ossetia and Abkhazia, the two regions that sparked Russia's first foreign incursion since the Soviet era.
``This may lead to new tensions between Russia and the West over Georgia, and may lead to more oil supply disruptions,'' said Carsten Fritsch, analyst at Commerzbank AG in Frankfurt. ``The market was hoping that supply was returning to normal but this new development, including an explosion on a Georgian train carrying oil over the weekend, is a reminder that things are not over.''
Futures fell 5.4 percent on Aug. 22 to $114.59 after the Baku-Tbilisi-Ceyhan pipeline, which transports oil from Azerbaijan through Georgia to Turkey's Mediterranean coast, resumed oil flows following a fire earlier this month that halted exports.
A fuel train exploded when it struck a mine about 7 kilometers (4.5 miles) from the city of Gori amid the continuing standoff with Russia, the Georgian government said Aug. 24.
A Georgian operation on Aug. 7 to retake South Ossetia led to a Russian invasion and the stationing of Russia soldiers in security zones disputed by Georgian leader Mikheil Saakashvili after a cease-fire accord.
To contact the reporter on this story: Ayesha Daya in Dubai adaya1@bloomberg.net
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