Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crude oil rebounds as Iran, Nigeria supply fears support

Published 01/16/2012, 04:29 AM
Updated 01/16/2012, 04:29 AM

Investing.com – Crude oil futures rose on Monday, rebounding from the previous session’s three-week low as concerns over a disruption to oil supplies from key producers Iran and Nigeria escalated over the weekend.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD99.53 a barrel during European morning trade, climbing 0.65%.
   
It earlier rose by as much as 0.77% to trade at a daily high of USD99.64 a barrel.

Crude prices dropped to the lowest level since mid-December on Friday after ratings agency Standard & Poor’s stripped France and Austria of their coveted triple-A ratings and slashed Italy, Spain, Portugal and Cyprus by two notches.

However, prices regained strength as oil traders continued to monitor tensions between Iran and the West after the Islamic Republic warned over the weekend that a disruption to crude supplies through the Strait of Hormuz would cause a shock to markets that “no country” could manage.

Meanwhile, Britain's foreign secretary William Hague said Sunday that he believed the European Union would agree tough new sanctions against Tehran's oil sector later this month.

Oil prices came under pressure late last week after reports surfaced that a pending European Union embargo on Iranian oil imports could be delayed by six months to allow some countries to find alternative supply.

Foreign ministers from the 27 European Union member states are scheduled to decide on sanctions on January 23 in Brussels.

Iran is the world's fourth largest oil producer, pumping nearly 5% of the world's oil in 2010. The threat of a major supply disruption from the country has helped support oil prices in recent sessions.

Further supporting prices, Nigerian President Goodluck Jonathan and labor unions had reportedly failed to reach a compromise over the removal of fuel subsidies over the weekend, raising fears of a shutdown of the African nation’s oil industry.

Nigeria is Africa’s largest oil producer, priding nearly 2.0 million barrels per day, with exports going largely to the U.S. and Europe.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery rose 0.84% to trade at USD111.28 a barrel, with the spread between the Brent and crude contracts standing at USD11.75 a barrel.

NYMEX floor trading will be closed on Monday for the Martin Luther King Jr. holiday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.