Български Русский English
Oil prices go zigzag with concerns about Iran
Friday, 30 December 2011 14:38

Oil prices went up and down after the market appeared confused over Iran’s threat to block the major oil shipping route through the Strait of Hormuz.

On Friday crude for February delivery was up 29 cents, 0.3%, to settle at $99.65 a barrel on the New York Mercantile Exchange after it fell to $98.30 earlier. Prices shed nearly 2% on Wednesday, a reversal after a six-session rally of more than 8%. Brent for February settlement added 13 cents to $108.14 a barrel on the London-based ICE Futures Europe Exchange. It's headed for a 14 percent increase this year.

The prices began to rise on Tuesday as Iran threatened to block shipping through the Strait of Hormuz — a key shipping route that provides 15.5 million barrels a day or about 40% of the world’s oil export.

On Wednesday, the American military reportedly announced it will not allow Iran to disrupt traffic through the channel but on Thursday, Iran reportedly rejected the warning.

Later on Thursday Brent prices fell about $1.7 and Light Sweet shed $1.98 (-1.95%) to $99.36 a barrel as Saudi Arabia promised to increase oil production should Iran block the Strait of Hormuz.

But RT’s business editor Nick Pool is not pessimistic about the oil prices rises. “Completely disrupting supply, of course will have enormous impact”, he said. “However it seems to be unlikely to happen and the market is not banking on that. If you look at the way the prices have risen the last few days, it’s gone steadily upwards. But it hasn’t shown a huge leap. It doesn’t have people thinking “My goodness, they gonna cut it off”.

Russia in WTO: Hard to go in, much harder to go out

article thumbnail

Ukraine filed a lawsuit against Russia at the WTO after Russia restricted imports of Ukrainian rail carriages and crossing pieces. What consequences does this lawsuit may entail for Russia and Ukraine. Who's the boss at the WTO? Does Russia need to bid farewell to the organization, even though it t [ ... ]

Moscow Refuses to Recognize Kiev’s Unilateral Border Demarcation – Russian Lawmaker

article thumbnail

MOSCOW, June 17 (RIA Novosti) - Russia will not recognize Kiev’s decision on the unilateral demarcation of the border, which would lead to ongoing border disputes, Russian lawmaker Alexei Pushkov said."We can assume that Russia will not recognize the unilateral demarcation at least because it is c [ ... ]

Khodorkovsky: Putin is not going to cozy up to Washington

article thumbnail

The number of predictions about the state of affairs in the US-Russian relations after the presidential election in the United States continues to grow. Former oligarch Mikhail Khodorkovsky did not stay aside and predicted that there would be nothing good in the US-Russian relations after the elect [ ... ]

source: http://rt.com/business/news/oil-prices-iran-concern-001/