Gas Prices Flat as Market Looks for Direction
Gas prices were little changed Monday despite threats from Iran's oil minister that his country could disrupt the world's supply if it were punished amid an international standoff over its nuclear program.
The U.S. and its European allies say Iran has been enriching uranium in an attempt to produce nuclear weapons, but Tehran says the uranium will be used only for a peaceful nuclear energy program.
Washington has warned Iran that it could face political and economic sanctions before the U.N. Security Council if it doesn't stop its nuclear activities.
Hamaneh said that a supply disruption by Iran - the world's fourth-largest oil producer and exporter - would drive oil prices above US$100 a barrel.
Yet oil prices held steady following his comments, with light, sweet crude for August delivery falling 5 cents to US $70.82 a barrel in electronic trading by midday in Europe. Brent crude for August rose 5 cents to US $69.98 a barrel on London's ICE Futures exchange.
"There's a risk premium that has been built in the oil price," said Adrian Loh, a Singapore-based regional oil analyst for Merrill Lynch. "Without any resolution from Iran, prices will stay the same around US$70."
Crude futures have held above US $70 a barrel for the previous week, anchored by strong demand, refinery glitches and jitters about the unresolved tension between the West and Iran.
The United States and its European allies say Iran has been enriching uranium in an attempt to produce nuclear weapons, but Tehran says the uranium will be used only for a peaceful nuclear energy program.
Hamaneh's comments were the second time in a month that Iran has threatened to disrupt the world's oil supply if Tehran is punished over its nuclear program.
Elsewhere, two Filipino oil workers kidnapped in Nigeria's southern delta were released Sunday after five days in captivity, concluding the latest hostage crisis in a tumultuous region where such episodes have become almost commonplace.
Attacks on oil pipelines and kidnappings have cut Nigerian oil production by more than 20 % this year, adding to upward pressure on prices. The workers were employees of Petroleum Geo-Services, an Oslo, Norway-based oil-field services company.
In other Nymex trading, gasoline futures rose almost a cent to US $2.1375 a gallon. Heating oil futures were up more than half a cent to US$1.9685 a gallon, while natural gas futures fell 13 cents to US $6.090 per 1,000 cubic feet.
Refineries are trying to boost gasoline output in preparation for the U.S. July 4 holiday, when demand rises as Americans travel. But analysts have noted that plant capacity has been reduced due to the damage from last year's hurricanes to Gulf of Mexico coast refineries.
The U.S. and its European allies say Iran has been enriching uranium in an attempt to produce nuclear weapons, but Tehran says the uranium will be used only for a peaceful nuclear energy program.
Washington has warned Iran that it could face political and economic sanctions before the U.N. Security Council if it doesn't stop its nuclear activities.
Hamaneh said that a supply disruption by Iran - the world's fourth-largest oil producer and exporter - would drive oil prices above US$100 a barrel.
Yet oil prices held steady following his comments, with light, sweet crude for August delivery falling 5 cents to US $70.82 a barrel in electronic trading by midday in Europe. Brent crude for August rose 5 cents to US $69.98 a barrel on London's ICE Futures exchange.
"There's a risk premium that has been built in the oil price," said Adrian Loh, a Singapore-based regional oil analyst for Merrill Lynch. "Without any resolution from Iran, prices will stay the same around US$70."
Crude futures have held above US $70 a barrel for the previous week, anchored by strong demand, refinery glitches and jitters about the unresolved tension between the West and Iran.
The United States and its European allies say Iran has been enriching uranium in an attempt to produce nuclear weapons, but Tehran says the uranium will be used only for a peaceful nuclear energy program.
Hamaneh's comments were the second time in a month that Iran has threatened to disrupt the world's oil supply if Tehran is punished over its nuclear program.
Elsewhere, two Filipino oil workers kidnapped in Nigeria's southern delta were released Sunday after five days in captivity, concluding the latest hostage crisis in a tumultuous region where such episodes have become almost commonplace.
Attacks on oil pipelines and kidnappings have cut Nigerian oil production by more than 20 % this year, adding to upward pressure on prices. The workers were employees of Petroleum Geo-Services, an Oslo, Norway-based oil-field services company.
In other Nymex trading, gasoline futures rose almost a cent to US $2.1375 a gallon. Heating oil futures were up more than half a cent to US$1.9685 a gallon, while natural gas futures fell 13 cents to US $6.090 per 1,000 cubic feet.
Refineries are trying to boost gasoline output in preparation for the U.S. July 4 holiday, when demand rises as Americans travel. But analysts have noted that plant capacity has been reduced due to the damage from last year's hurricanes to Gulf of Mexico coast refineries.
posted by Ottawa Gas Prices | 5:54 AM
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