Iran Nuclear NewsOil rises after Iran vows to defy UN sanctions...

Oil rises after Iran vows to defy UN sanctions on nuclear work

-

Bloomberg: Crude oil rose after Iran, the Middle East’s second-largest exporter, said it will defy United Nations sanctions and pursue nuclear research.
By Hector Forster

Dec. 26 (Bloomberg) — Crude oil rose after Iran, the Middle East’s second-largest exporter, said it will defy United Nations sanctions and pursue nuclear research.

The UN Security Council unanimously voted on Dec. 23 for sanctions on Iran for refusing to suspend uranium enrichment. President Mahmoud Ahmadinejad said the following day that the world will have to accept Iran as a nuclear country. Violence in Nigeria added to concern that global supply may be disrupted.

“While the situation in Iran continues prices may test $65 a barrel,” said Makoto Takeda, an energy analyst at futures broker Bansei Securities Co. in Tokyo. “We may need to see actual disruptions to supply for prices to go higher.”

Crude oil for February delivery rose as much as 48 cents, or 0.8 percent, to $62.89 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $62.84 at 2:20 p.m. Singapore time.

Crude oil futures didn’t trade in New York yesterday because of the Christmas holiday. Oil closed at $62.41 last week, the contract’s lowest close since Dec. 13.

Brent oil for February settlement rose as much as 58 cents, or 0.9 percent, to $63 a barrel in after-hours trading on the ICE Futures exchange in London. It was at $62.95 a barrel at 1:54 p.m. Singapore time.

Iran’s Ahmadinejad rejected on Dec. 24 the UN resolution imposing sanctions on his country as a “scrap of paper.” The measures included a ban on materials that could be used to build a nuclear bomb. The U.S. and other nations allege Iran aims to acquire atomic weapons, a claim Iran denies.

Hormuz Strait

“Oil is highly vulnerable to the political developments,” Stephen Jansma, head of energy for Asia at Rabobank International in Singapore, said in a Dec. 21 interview broadcast today. “A lot of those Iran barrels go to Asia, so we expect a lot of support from the Asian countries to adverse political movements against Iran.”

Iran is the second-biggest producer in the Organization of Petroleum Exporting Countries, which pumps 40 percent of the world’s oil. It sits on one side of the Strait of Hormuz, the waterway through which the United Arab Emirates, Saudi Arabia and Kuwait ship most of their crude exports.

“There’s a surfacing of geopolitical risks in Iran and also Nigeria,” said Hiroyuki Kikukawa, associate director of research at Nihon Unicom Corp. in Tokyo.

The Movement for the Emancipation of the Niger Delta, or MEND, a Nigerian group that has claimed responsibility for previous attacks on facilities belonging to Royal Dutch Shell Plc and Eni SpA, said it planted a car bomb in Port Harcourt in the nation’s main oil producing region on Dec. 23.

Kidnapped Workers

Four Eni workers kidnapped this month by armed militants in Nigeria will be killed if the Italian oil company tries to pay ransom for their freedom, Il Giornale reported on Dec. 24, citing MEND spokesman Jomo Gbomo.

The three Italians and one Lebanese will be freed in exchange for the release of four prisoners being held in Nigerian prisons, Gbomo said. No negotiations with his group are currently taking place, he said.

The Organization of Petroleum Exporting Countries, which pumps 40 percent of the world’s oil, will cut output by 500,000 barrels a day as of Feb. 1 in addition to the 1.2 million barrel-a-day cut agreed on Oct. 20.

Abu Dhabi National Oil Co. will cut exports of three of its crude oil varieties by between 3 percent and 5 percent in February to comply with OPEC production cuts, the company said in a faxed statement.

Crude oil fell last week on speculation that warmer-than- usual weather in the U.S. would limit demand for heating oil.

Home-heating demand in the Northeast, which accounts for 80 percent of U.S. heating-oil use, will be 26 percent below normal in the week through Dec. 29, according to Weather Derivatives, a Belton, Missouri, forecaster.

“Without a cold snap covering the U.S. Northeast and demand for heating oil rising it may be difficult for prices to gain much further,” said Bansei’s Takeda.

Latest news

Iranian People’s Resistance Changed the Appeasement Policy

Soon after the new US government started its obligations in January 2021, hand in hand with the European governments...

Khamenei’s Disgraceful Campaign Against Piranshahr and Javanrud, Who Will Be the Loser?

On the 67th day of Iran’s revolution, the Iranian regime attempted to put a halt to the protests in...

Iran: Expensive Medicine, Cheap Human Life

A look at the equipment and weapons that the Iranian regime has been using against its people to suppress...

Who Is Abolqasem Salavati Iran Regime’s Killer Judge?

Last week, it was announced that the case of several people who were arrested during the Iranian People's uprising...

Iran Revolution Characteristics

More than two months have passed since the start of the latest round of protests in Iran against the...

Iran’s Regime Is Unable To Eradicate Protests

Totalitarian governments, whether be it a monarchy or a clerical regime, and their international supporters are pursuing the same...

Must read

Two deported from Iran for practicing Baha’i faith

Iran Focus: Tehran, Jan. 11 - Two foreigners were...

MEK’s Role in Iran and How It Can Help the Global Peace?

Iran Focus London, 2 Jul - Experts and scholars, prior to...

You might also likeRELATED
Recommended to you