Oil at 9-month high after Iran cuts supply

AP/CBS

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.

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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.

"The price rise is more a reflection of concerns about the further escalation in tensions between Iran and the West," said commodity analyst Caroline Bain of the Economist Intelligence Unit. "Banning the tiny quantities of exports to the U.K. and France involves very little risk for Iran — indeed quite the opposite, it catches the headlines and leads to a higher global oil price, which is something Iran is very keen to encourage."

Oil prices also rose on hopes that Greece's new bailout deal will be approved on Monday as well as by China's decision to boost money supply bid to spur lending and economic growth. China's central bank said Saturday it will lower the ratio of funds that banks must hold as reserves, a move that frees tens of billions of dollars.

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.

"Building economic momentum has the potential to pull oil prices higher for the next 12 to 24 months," J.P. Morgan said in a report.

In other energy trading in March contracts, heating oil gained 1.61 cents to $3.2050 per gallon and gasoline futures rose 3.2 cents to $3.22 per gallon. Natural gas lost 4.8 cents to $2.636 per 1,000 cubic feet.

[occupy_cbs]

sjc_1: "If the Keystone XL people wanted the products in the U.S. they would build a refinery in Canada or not far over the border in the U.S. Instead it would go to the Gulf of Mexico, to be refined and shipped all over the world. The Republicans defeated an amendment recently requiring that oil be sold in the U.S."




Too bad the fox/rush parrots cannot think for themselves, and can only spew the propaganda that BIG OIL has given them, since the Keystone XL pipeline is for EXPORTING refined fuel from the tar sands bitumen.

It will not lower our dependence on foreign OIL, nor will it reduce our cost of GASoline or diesel here in the U.S. since BIG OIL will make higher profits by EXPORTING tax free fuel to Latin America and Europe!

[occupy_cbs]

Lubricano: "The US is awash with oil but to keep the prices high they are selling the surplus to China, India ect at high profits and keep prices at the pumps high here a win win for the oil companies and Obama....Obama has not jumped in to help our plight.."



Ridiculous right-wing propaganda, since OIL/GAS is traded on the international market -- President Obama cannot change anything, since this is all done by the GREEDY speculators and volatility!

While U.S. OIL production is the highest in 8 years, we are NOT selling OIL to China/India, since we are still the #1 OIL importer in the world -- EXPORTING refined OIL products as fuel.

Try getting the facts instead of spewing the fox/rush propaganda!

[Lubricano]

I saw the interview on CNN. And the fact is the USA used
10% less petro products in the past year. A huge amount.
The surplus is bein sold other countries. If I owned a
company that made electric/type cars (Volt) and wanted
to force people to buy (the peoples car like VW in 1938)
this auto I would love to see the price of gas go though
the roof.

[70John76]

Lets ask Harold Hamm of Erin, Oaklahoma why the gas prices are high. He has 8.6 Billion in Oil! They are exporting oil to Asia and we are footing the bill. The President knowd this and will not stop them. Harold do you really need more money? Our groceries have tripled in the last couple of years because of shipping costs. Very few of us are buying anything or going anywhere.All you and your fellow US Oilmen are doing is killing the country that provided you the freedom to financially destroy it. We are trying to survive your greed. Harold.....Dude do you really need another 8.6 Billion????? Sincerely, A US born American.

[lami987]

We the people must stop US oil companies to export oil extracted from US soil or gas refined on American soil. So no Alaskan oil for export. Right now all Alaskan oil are exported. Oil and gas obtained from Keystone pipeline, if approved, is also targeted for export. If people of Iran refuse to sell their oil to us then its their right to do so.

[goffredo29]

You just have to look at the stock market to see why the price of oil is going up. As soon as the market starts to go up, so does the price of oil. It's a simple as that. When the oil market gets a sign that the market will bear higher prices, then they go up. Just give us another economic crisis and the prices will go down again. Simple as that. I'm all for economic crises because they really translate into pain for the wealthy while the working stiff gets through unscathed. It's only when that wealthy start their scamming ways that the working stiff gets hurt. Oh, and the Catholic Church needs to be dismantled. It's just an abuse factory.

[SUZAMBA]

What the heck did the Catholic Church have to do with this??
And ""OUCH"" that's me while I'm putting gas in the car!!
Nit wit!!

[occupy_cbs]

Instead of whining and crying about the fluctuation of OIL/GAS prices, we should all be doing more to fight the monopoly of the BIG OIL energy policy we have today, and push for more alternative fuel distribution centers throughout our country.

As with other alternative fuels, natural gas distribution to and at fueling stations, as well as the number of stations selling CNG are other barriers for widespread use of NGVs today. CNG-powered vehicles are considered to be safer than gasoline-powered vehicles. CNG may also be mixed with biogas, produced from landfills or wastewater, which doesn't increase the concentration of carbon in the atmosphere.

NGV's can be refueled anywhere from existing natural gas lines. This makes home refuelling stations that tap into such lines possible.

[occupy_cbs]

"gasoline futures rose 3.2 cents to $3.22 per gallon. Natural gas lost 4.8 cents to $2.636 per 1,000 cubic feet."



Maybe we should take advantage of the glut of natural GAS these days and start converting more vehicles to LNG and CNG.

There were 12.7 million natural gas vehicles worldwide by 2010, and in the Latin American region almost 90% of NGVs have bi-fuel engines, allowing these vehicles to run on either gasoline or CNG.

[occupy_cbs]

Forty-Four: "They have to BUY the land in which they run the pipeline across."



Oh.....like the private railroads did in the 1800's, and basically stole the land through eminent domain abuse?

[NeoCon_ChickenHawk]

Eminent domain is law, not abuse. In the words of a famous Vulcan, "The needs of the many, outweigh the needs of the few or the one".

[occupy_cbs]

STEALING is still STEALING, no matter how much lipstick you neocons apply to it, and that's exactly what eminent domain abuse is!

[Forty-Four]

Iran hasn't cut supply.
They're just selling it to the Communist Chinese instead of Britain
__________________________________________________
That IS cutting the supply, to the UK, and that is what they are talking about

[occupy_cbs]

Come now, aren't you McCarthytes a bit confused today, since "Communist" China is much more Capitalistic China than anything else!

[occupy_cbs]

Hey 44 -- missed all those "Communist" goods in every BIG BOX store?

[occupy_cbs]

dzaffina: "you should be thanking eric cantor, he has done everything in his power to protect the oil speculators."



Yes, that little POS can't-or sure has done everything to protect those GREEDY speculators that only cause us to pay more at the pump!

Americans should tar and feather that bozo, and send him back to VA!