Latest Brent Oil Price
In London, Brent crude oil futures for January 2012 delivery was trading at $110.71 a barrel, 08.20 GMT this morning on the ICE Futures Exchange, after hitting $111 earlier in today’s trading session.
Oil Price at $250 a Barrel?
Iran’s foreign ministry spokesperson Ramin Mehmanparast told the local newspaper Sharq on Sunday: “As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel.”
But oil analysts told Gulf News last night that Iran’s predictions seemed exaggerated.
“In the unlikely situation that oil exports were cut off then I still don’t buy the argument that oil prices would double. Saudi Arabia would step in and increase production to cover for that. In theory, they could make up the entire loss of Iran-ian exports.” said Robin Mills, an analyst at Manaar Energy Consulting.
European Oil Ban & Findings
The European Union on Thursday expanded a sanctions blacklist against Iranian firms and individuals and warned it was considering extra measures against Iran’s financial and oil sectors.
According to Fitch Ratings, a potential European Union ban on buying Iranian oil would be likely to have a much smaller negative impact on European oil companies than the recent Libyan crisis because exposure to Iran is almost exclusively through refining operations, rather than production.
“Oil production in Iran is dominated by the National Iranian Oil Company and the involvement of European oil companies in upstream activities is negligible. Any ban on Iranian oil imports, therefore, wouldn’t result in the same loss of cash-flow from production that occurred when facilities were shut down in Libya.” said Simon Kennedy, Director at Fitch Wire.
The oil market is being influenced by the rising tensions over Iran together with the economic situation in America and Europe. Currently China, the European Union, India, Japan, South Korea and Turkey are the main customers for Iran’s oil exports. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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