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Oil prices heading for biggest gain in ten years amid Iran unrest
Published on December 30, 2009 by oilprices · No CommentsOil prices are heading for its biggest annual gain in ten years, on forecasts that US stockpiles are narrowing while unrest in Iran sows concerns crude oil supply will be disrupted. NYMEX and ICE crude oil futures are set for a 77 percent gain this year, the biggest since 1999. Oil prices have tripled in the past ten years.
US crude oil inventories likely fell by 1.85 million barrels last week, according to analysts surveyed by Bloomberg News before an Energy Department report due today at 10:30 a.m. in Washington. Iran, holder of the world’s second-largest crude reserves, detained about 1,000 people after the biggest anti government demonstrations in six months.
“Stocks are showing the market is getting towards a more balanced situation, though it will take time,” said Alexandra Kogelnig, a consultant with JBC Energy GmbH in Vienna. “Tensions in Iran are always a factor even if there is nothing immediately happening, as if something major happens it will affect exports.”
Iran yesterday accused Western countries of inciting clashes on December 27th between opposition supporters and security forces in the capital Tehran and other cities, which killed at least eight people, according to state media reports.
US Light crude oil futures for February delivery was trading at $78.73 a barrel, 14 cents lower in electronic trading on the NYMEX, as of 12:57 p.m. London time. It earlier rose as much as 32 cents, or 0.4 percent, to $79.19 a barrel.