Oil Rises to Nine-Month High on Iran Export Halt, Europe Bailout Meeting
Futures climbed as much as 1.9 percent for a fourth day of gains, the longest rising streak since December. Iran will supply crude to “new customers” instead of companies in the U.K. and France, the oil ministry’s news website Shana reported, citing spokesman Alireza Nikzad Rahbar. Prices also advanced before European finance ministers meet today to discuss a 130 billion euro ($172 billion) aid package for Greece, the country’s second rescue in less than two years.
“Sentiment in the market has changed in the last week,” said Tetsu Emori, a commodity fund manager at Astmax Ltd. in Tokyo who predicts oil will reach $110 a barrel in the near term. “We had news that Iran stopped some exports so that might have pushed up prices. The euro countries have no choice but to accept an agreement, otherwise everything will collapse.”
Crude for March delivery rose as much as $1.97 to $105.21 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since May 5. The contract, which expires tomorrow, was at $104.97 at 10:21 a.m. Singapore time. The more actively traded April future gained $1.72 to $105.32. Prices increased 4.6 percent last week and are up 6.2 percent this year.
Brent oil for April settlement on the London-based ICE Futures Europe exchange climbed as much as $1.57, or 1.3 percent, to $121.15 a barrel. The European benchmark contract was at a premium of $15.77 to New York-traded crude, the lowest since Feb. 2. The difference was a record $27.88 on Oct. 14.
http://www.bloomberg.com/news/2012-02-20/oil-rises-to-nine-month-high-on-iran-export-halt-europe-bailout-meeting.html
Note that most refineries in the US pay Brent prices for imported crude oil. Only Canadian oil is priced like WTI oil in Oklahoma.