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Crude oil prices trading up on Iran, supply risk
Published on November 23, 2009 by oilprices · 1 CommentCrude oil prices rose above $78 a barrel in early trading on Monday due to heightened tension between Iran and Western countries which raised speculation of a potential supply risk, thereby encouraging investors to push oil prices higher.
US crude oil futures for January delivery rose 76 cents to $78.231 a barrel by 0213 GMT on the NYMEX. The December contract, which expired on Friday, settled down 74 cents at $76.72 a barrel, weighed down by a stronger dollar and concerns about the energy demand outlook. London Brent crude oil futures gained 79 cents to $77.99 on the ICE Futures Exchange.
Iran’s armed forces launched air defense war games on Sunday to show off the country’s deterrence capabilities in the face of Western pressure over its nuclear program, and a cleric in the Revolutionary Guards warned the Islamic republic would fire missiles at “the heart of Tel Aviv” if attacked.
“There’s always a supply rise risk premium that can arise from these elevated tensions in the Middle East and that is a factor pushing up oil prices this morning,” said Toby Hassall, a commodities analyst at the Commonwealth Bank of Australia.
Iran’s threats came a day after senior officials from six world powers said they were disappointed Iran had not accepted proposals intended to delay its potential to make nuclear weapons, with US President Barack Obama having warned that there could be a package of sanctions against Iran within weeks.
Tags: Iran, oil prices
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What an utter crock.
Time to fill the rest of the oil tankers and park them offshore on speculation in case there is a hurricane in the Gulf of Mexico in 2012 eh?
I hope the FSA and / or the general public gets some testosterone and actually does something about this oil trading joke before it destroys what little is left of the worlds economy.