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.