Oil Prices Rise on Iran Concerns
By Alan Fein
New York - Crude oil prices rose Thursday on concern over Iran
balk at the IAEA report to the UN Security Council, threatening
retaliation if sanctions are imposed, which could mean a cut
in oil production.
Crude oil for April delivery rose 45 cents to $60.47 a barrel
in New York.
In London, Brent crude oil settled $1.03 higher at $61.06 a barrel.
Violence broke out in Nigeria once again and the UN Security
Council is weighing the report from the International Atomic
Energy Agency as to whether or not sanctions should be imposed
on Iran over its refusal to cooperate.
While the US Department of Energy said yesterday that crude oil
stocks in the United States were at a six-year high and OPEC
came away from its meeting in Geneva agreeing to maintain
production quotas at 28 million barrels of oil per day,
traders still considered disruptions to production over
the geopolitical events in Nigeria and Iran Thursday.
Iranian President Mahoud Ahmadinejad said Thursday the West
would suffer more than Iran if it continued to try to stop
the Islamic Republic from developing nuclear technology.
Nigerian militants said they would appoint a mediator to
seek a resolution to a three-month campaign of sabotage and
kidnapping which has cut supplies from the world's eighth-largest
exporter.
Due to unrest and cuts in Niger Delta production, OPEC's daily
production is down 550,000 barrels at 24.75 million barrels
a day. Any continued OPEC oil cuts from Iran or Nigeria would
affect world supplies and drive up prices, traders said.
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