Oil prices rocket after Iran cuts supply
By The Associated Press
This article was published February 20, 2012 at 8:16 a.m.
PHOTO BY AP / VAHID SALEMI
Iranian Oil Minister Rostam Qassemi, speaks with media in Tehran, Iran, on Feb. 4, 2012.
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Oil prices jumped to a nine-month high above $105 a barrel on Monday after Iran said it halted crude exports to Britain and France in an escalation of a dispute over the Middle Eastern country's nuclear program.
By early afternoon in Europe, benchmark March crude was up $1.91 to $105.15 per barrel in electronic trading on the New York Mercantile Exchange. Earlier in the day, it rose to $105.21, the highest since May. The contract rose 93 cents to settle at $103.24 per barrel in New York on Friday.
Markets in the United States are closed Monday for the Presidents Day holiday.
Iran's oil ministry said Sunday it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports. They include a freeze of the country's central bank assets and an oil embargo set to begin in July.
Iran's Oil Minister Rostam Qassemi had warned earlier this month that Tehran could cut off oil exports to "hostile" European nations. The 27-nation EU accounts for about 18 percent of Iran's oil exports.
The EU sanctions, along with other punitive measures imposed by the U.S., are part of Western efforts to derail Iran's disputed nuclear program, which the West fears is aimed at developing atomic weapons. Iran denies the charges, and says its program is for peaceful purposes.
Analysts said Iran's announcement would likely have minimal impact on supplies, because only about 3 percent of France's oil consumption is from Iranian sources, while Britain had not imported oil from the Islamic republic in six months.
Oil has jumped from $96 earlier this month amid optimism the global economy may grow more this year than previously expected. J.P. Morgan raised its Brent crude price forecast to as high as $135 from $120 — on Monday, the April Brent crude contract was up 79 cents at $120.37 per barrel on the ICE Futures exchange.
Comments on: Oil prices rocket after Iran cuts supply
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NONSHEEPLE says... February 20, 2012 at 9:41 a.m.
"Analysts said Iran's announcement would likely have minimal impact on supplies, because only about 3 percent of France's oil consumption is from Iranian sources, while Britain had not imported oil from the Islamic republic in six months"
If that's the case then there should be really NO IMPACT at all. I'm sure China will gladly increase their imports of Irans oil...
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Reason says... February 20, 2012 at 10:04 a.m.
It is NOT Iran or supply and demand.... It is Wall Street "speculation".
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NONSHEEPLE says... February 20, 2012 at 11:14 a.m.
Listen to Reason... Reason speaks the truth..
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T6 says... February 20, 2012 at 6:14 p.m.
So if skyrocketing gas prices are because of speculators. What's your excuse for high food prices and high utility prices(natgas, electricity)?
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ToGQ4U says... February 20, 2012 at 7:09 p.m.
I'm going to agree with Reason on this one for sure!
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T6 says... February 20, 2012 at 9:05 p.m.
Funny, I don't recall Democrats blaming speculators for high gas prices when Bush was Pres.
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NoUserName says... February 20, 2012 at 11:22 p.m.
I have no commentary on that other stuff, but increased gas prices contribute to increased fuel prices.
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NoUserName says... February 20, 2012 at 11:23 p.m.
Make that FOOD prices. Of course increased gas = increased fuel. Slip 'o the mind there.
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Winfield says... February 21, 2012 at 8:05 a.m.
Here is just ONE reason for the jump in oil prices:
An excerpt from the headline story above.
"J.P. Morgan raised its Brent crude price forecast to as high as $135 from $120 — on Monday, the April Brent crude contract was up 79 cents at $120.37 per barrel'
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We are being ripped off big time by the speculators, and until they are muffled, we will continue to be unjustly ripped off with extremely high oil and gas prices. When the so called recovery we're in, starts going backwards at an astronomical pace, then maybe our do-nothing idiots in Congress just may do something about it.
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ToGQ4U says... February 22, 2012 at 5:03 p.m.
Our government has also found it very convenient for the petroleum producers to export gasoline, jet fuel, diesel oil and so on to other countries for a better profit, and hold the domestic supply artificially low which increases the price of gasoline, where then the Government collects more taxes on. Thanks Obama.
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