Crude Oil Prices Rise on Lingering Concerns About Iran and Nigeria
Oil prices rebounded Monday as the uncertain outlook for crude supplies out of Iran and Nigeria supported prices amid an absence of fresh news.
Light, sweet crude for May delivery rose 18 cents to $66.81 US a barrel in electronic trading on the New York Mercantile Exchange. The contract on Friday closed 52 cents lower at $66.63 a barrel. May Brent crude futures on the ICE Futures exchange in London rose 73 cents to $66.64 a barrel.
Last week, the crude contract made solid gains in three sessions to surge nearly $3 a barrel on supply concerns linked to U.S. gasoline inventories, which have been falling ahead of the U.S. summer driving season, when demand peaks.
Iran's nuclear ambitions were keeping a high floor on prices and supporting the uptrend, analysts said.
"A lot of uncertainty remains in how the Iranian situation will work itself out," said Victor Shum, energy analyst with Purvin & Gertz in Singapore.
"There is some concern in the Asian market on whether Iran is a reliable supplier," Shum said.
Iran's foreign minister Friday renewed his pledge to honour his country's oil sales commitments to other countries.
"We are not going to use oil as political leverage in conducting our foreign policy," Manouchehr Mottaki said at the end of an appearance at a security think tank in Geneva.
The comments came amid rising tensions between Iran and the West over Iran's nuclear program. The UN Security Council voted unanimously on Wednesday to demand that Iran suspend nuclear enrichment but Iran has remained defiant, saying enrichment is "irreversible."
U.S. gasoline stocks have fallen nearly 10 million barrels in the past four weeks, a trend analysts expect to continue for several more weeks as refiners undergo seasonal maintenance work.
Gasoline futures lost 0.43 cent to $1.8800 a gallon, while heating oil prices gained 0.52 cent to $1.8685 a gallon.
Natural gas futures inched down marginally to $7.205 per 1,000 cubic feet.
Oil prices also continued to be supported by fears of more disruptions to supply by militant unrest in Nigeria, which has already taken more than 500,000 barrels per day of oil off the market.
OttawaCitizen
Light, sweet crude for May delivery rose 18 cents to $66.81 US a barrel in electronic trading on the New York Mercantile Exchange. The contract on Friday closed 52 cents lower at $66.63 a barrel. May Brent crude futures on the ICE Futures exchange in London rose 73 cents to $66.64 a barrel.
Last week, the crude contract made solid gains in three sessions to surge nearly $3 a barrel on supply concerns linked to U.S. gasoline inventories, which have been falling ahead of the U.S. summer driving season, when demand peaks.
Iran's nuclear ambitions were keeping a high floor on prices and supporting the uptrend, analysts said.
"A lot of uncertainty remains in how the Iranian situation will work itself out," said Victor Shum, energy analyst with Purvin & Gertz in Singapore.
"There is some concern in the Asian market on whether Iran is a reliable supplier," Shum said.
Iran's foreign minister Friday renewed his pledge to honour his country's oil sales commitments to other countries.
"We are not going to use oil as political leverage in conducting our foreign policy," Manouchehr Mottaki said at the end of an appearance at a security think tank in Geneva.
The comments came amid rising tensions between Iran and the West over Iran's nuclear program. The UN Security Council voted unanimously on Wednesday to demand that Iran suspend nuclear enrichment but Iran has remained defiant, saying enrichment is "irreversible."
U.S. gasoline stocks have fallen nearly 10 million barrels in the past four weeks, a trend analysts expect to continue for several more weeks as refiners undergo seasonal maintenance work.
Gasoline futures lost 0.43 cent to $1.8800 a gallon, while heating oil prices gained 0.52 cent to $1.8685 a gallon.
Natural gas futures inched down marginally to $7.205 per 1,000 cubic feet.
Oil prices also continued to be supported by fears of more disruptions to supply by militant unrest in Nigeria, which has already taken more than 500,000 barrels per day of oil off the market.
OttawaCitizen
posted by Ottawa Gas Prices | 7:52 PM
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