Crude fell as much as 1.4 percent after the officials said that the ban would be delayed to allow nations to find other supplies. International Atomic Energy Agency inspectors will go to Tehran to discuss Iran’s nuclear program, two diplomats with knowledge of the talks said. Oil also declined on a report that Standard & Poor’s is stripping France of its AAA credit rating.
Prices dropped on the news that the EU had pushed back the embargo and may fall further when we get more information about the inspectors’ visit. Anything that reduces tension with Iran sends prices lower
Crude oil for February delivery fell 22 cents, or 0.2 percent, to $98.88 a barrel at 11:53 a.m. on the New York Mercantile Exchange. The contract dropped as much as $1.40 to $97.70, the lowest level since Dec. 21. Oil is headed for a 2.6 percent decline this week. Brent oil for February settlement declined 56 cents, or 0.5 percent, to $111.26 a barrel on the London-based ICE Futures Europe exchange.
Iranian Vice President Mohammad Reza Rahimi threatened on Dec. 27 to block the Strait of Hormuz, the transit route for about a fifth of the world’s oil, if the EU bans the country’s oil exports. U.S. Joint Chiefs of Staff Chairman General Martin Dempsey said Jan. 9 that Iran can temporarily choke off the waterway. About 17 million barrels of oil a day passes through the strait, according to the U.S. Energy Department.
Members of the Organization of Petroleum Exporting Countries including Saudi Arabia would be able to make up for a drop in Iranian supplies to Europe, former OPEC President Chakib Khelil said today on Bloomberg Television’s “On the Move.”
Rising tension between Iran and the West over the country’s nuclear development has spurred price rises in the past year. The U.S. and its European allies suspect Iran of using the program to develop atomic weapons. The government in Tehran says the technology is for domestic power generation.
Oil gained as much as 1.1 percent earlier today after Nigerian labor unions said they will continue a strike that threatens oil exports from Africa’s top producing country.
Oil in New York may fall next week on concern that the U.S. economy is slowing, curbing fuel demand in the largest crude- consuming country, a Bloomberg News survey showed. Fifteen of 30 analysts, or 50 percent, forecast oil will decline through Jan. 20. Ten respondents, or 33 percent, predicted prices will increase and five estimated there will be little change. For the latest updates on the stock market, visit Stock Market Today
oil price jan 16 2012, crude futures prediction january 16-20 2012, oil prices dropp next week jan 16 2012, Oil in New York may fall next week jan 16 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
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