World

Oil Jumps to 9-Month High After Iran Cuts Supply

Oil Prices Jump After Iran Cuts Supply

Iranian President Mahmoud Ahmadinejad(AP Photo/Franklin Reyes)

(AP) — Oil prices jumped to a nine-month high near $105 a barrel Monday in Asia after Iran said it halted crude exports to Britain and France in an escalation of a dispute over the Middle Eastern country’s nuclear program.

Benchmark crude was up $1.75 to $104.99 per barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Earlier in the day, it rose to $105.21, the highest since May. The contract rose 93 cents to settle at $103.24 per barrel in New York on Friday.

Brent crude was up $1.52 at $121.10 per barrel in London.

Iran’s oil ministry said Sunday it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran’s crucial fuel exports. They included a freeze of the country’s central bank assets and an oil embargo set to begin in July.

Iran’s Oil Minister Rostam Qassemi had warned earlier this month that Tehran could cut off oil exports to “hostile” European nations. The 27-nation EU accounts for about 18 percent of Iran’s oil exports.

The EU sanctions along with other punitive measures imposed by the U.S. are part of Western efforts to derail Iran’s disputed nuclear program, which the West fears is aimed at developing atomic weapons. Iran denies the charges, and says its program is for peaceful purposes.

Oil prices were also boosted by China’s decision to boost money supply in a bid to spur lending and economic growth. China’s central bank said Saturday it will lower the ratio of funds that banks must hold as reserves, a move that frees tens of billions of dollars.

Oil has jumped from $96 earlier this month amid optimism the global economy may grow more this year than previously expected. J.P. Morgan raised its Brent crude price forecast to as high as $135 from $120.

“Building economic momentum has the potential to pull oil prices higher for the next 12 to 24 months,” J.P. Morgan said in a report.

In other energy trading, heating oil added 0.6 cent to $3.22 per gallon and gasoline futures rose 1.4 cents to $3.22 per gallon. Natural gas jumped 9.2 cents to $2.66 per 1,000 cubic feet.

Comments (62)

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  • skippy6
    Posted on February 20, 2012 at 7:59am

    This is just to test the waters, the next move will be the Straight of Hormuz……It won’t matter if they close it or not, they just want to start a confrontation with the US….Then the 12th Imam will crawl out of the well and WW III will begin, that’s what they believe and want!! Anyone disagree???

    Report Post » skippy6  
    • rangerp
      Posted on February 20, 2012 at 8:18am

      wait a minute. I thought during the last election that Obama wouls just appologize, and the whole world was going to love us.

      Hope and change Baby!

      Report Post » rangerp  
    • HKS
      Posted on February 20, 2012 at 10:56am

      And Obama puts all our marbles in the Muslim supplier basket and shuts off others that have at least been friendly? I think economically we are in for a devastating blow here. But then has he done anything since in office that would do anything else? Every move he has made is to kill the economy.

      Report Post » HKS  
    • Jaycen
      Posted on February 20, 2012 at 12:48pm

      Why isn’t the press reporting on this every single minute? Why aren’t they demanding a commission to investigate win-fall profits from oil companies?

      Gas is higher than it EVER HAS BEEN! Where is the media outrage?

      Report Post » Jaycen  
  • chasbronson
    Posted on February 20, 2012 at 7:26am

    We buy cheap oil,refine it then,resell it.We are producing a value added product.Its the refineries stupid.Thats why the pipeline deal was so hot.The o administration could not get their grubby cut out of the deal.They would also lose on the whole Gulf Coast oil spill conspiracy deal.

    Report Post »  
  • ThePostman
    Posted on February 20, 2012 at 7:15am

    I gotta admit, I am making tons of big coin off the actions of these rubes in Washington. My gold and my oil stocks are doing amazingly well. I live in interesting times.

    But I will be voting for Dr. Paul in the general election. I’d rather be a little poorer in a sane nation than a little richer in an insane one.

    Sanctions do not work. War probably will not work. Peace is sometimes still a valid solution.

    And besides, we’ve tried every single one of these strategies with North Korea. See where that got us? A nuclear country that hates us.

    Be honest with yourself – there is not a single candidate out there who will approve going to war with Iran. Not a single solitary one. So if we are not going to attack, what sense does it make to poke and prod them?

    The Israelis can take care of this problem just fine all by themselves. Their nation is geographically tiny but their military might is 100 times that of Iran.

    Report Post »  
    • Baddoggy
      Posted on February 20, 2012 at 7:34am

      You are so right about Israel. They can take them out in a day easily. The question is how. I dont think they will use a nuke and i am not sure if a bunker buster can reach their buried rector. They might use and EPM. That would bring Iran to it’s knees.

      They are not far out of living in the stone age, but an EPM will make them true desert dwellers.

      Report Post » Baddoggy  
  • BOMUSTGO
    Posted on February 20, 2012 at 6:58am

    Israel should attack on July 21..First day of Ramadan.

    Report Post » BOMUSTGO  
  • Joyzee
    Posted on February 20, 2012 at 6:55am

    Drill in the U.S.and we wont need the troll’s oil

    Report Post »  
    • Oil_Robb
      Posted on February 20, 2012 at 7:58am

      We have all you could use for thext 100 years up here in Alberta, we are the second largest nation on earth and have 33 million people and have barely scratched the surface. The reserves that we have found make us the third largest oil/gas producer in the world.

       
  • Razorhunters
    Posted on February 20, 2012 at 6:03am

    pre-planned attack on Iraq, Syria, Lebanon, Libya, Somalia, Sudan,Iran
    http://www.youtube.com/watch?feature=player_detailpage&v=gtUfYGBlYSw

    This is the plan…

    Report Post » Razorhunters  
  • NOBALONEY
    Posted on February 20, 2012 at 5:23am

    Finally there’s cooperation! Ahmadinejad backing an Obama promise of “under my plan energy prices would necessarily skyrocket”. Which has also sent Nancy Pelosi into hiding.

    Report Post » NOBALONEY  
    • TomFerrari
      Posted on February 20, 2012 at 6:52am

      Nah, she’s probably just getting her twice annual facelift.
      LOL
      Stop it, already, pelosi!
      You’re just OLD. It happens. Tugging paper-thin skin over your bony face just makes you look desperate. Kind of like the Wicked Witch of the West looked. Not the Broadway one, the MGM one. Or maybe more like Witchiepoo from H.R.PuffNStuff, or the EVIL QUEEN from Disney’s Sleeping Beauty.
      Regardless, pelosi is a 50 pound, cast iron, antique MANUAL ADLER TYPEWRITER.
      His… I meant, her, constituents are absolutely fixated on marxism and socialism.
      They are also the single largest market of consumers for iPhones, iPads, iPods, iCanOpeners, iToilets, iToasterOvens, etc. They always want the latest and greatest of everything, and have no respect for History or their elders.
      So, the split second a new marxist comes along and runs for her office, they will throw her out like yesterday’s half-caff-mocha-frappa-slappa-latta-chino!

      Report Post » TomFerrari  
  • asybot12
    Posted on February 20, 2012 at 3:13am

    The amount of oil Iran cut to the UK and France is minuscule as to be laughable. The reaction by speculators is common. Please do not forget this all based on “futures”. The only people that profit!. And of course obama (who will surely blame it on Bush) and say out loud I told you so! I will make it go up to $5 per Gallon of gas! Please one of the big reasons in the rise of oil prices is actually because less is being used sounds weird? Remember folks a really large part of tax revenue (ie the income for the gov.) is taxes on oil and its products! Do Not be fooled this is also a way of diverting our attention away from restarting the economy! The pipe line from Canada to the US would drop the price instantly, bite the bullet and start that pipe line! To the candidates from the GOP get back on track IT IS THE ECONOMY STUPID!

    Report Post »  
    • chasbronson
      Posted on February 20, 2012 at 7:16am

      Correct,It only takes 2 at an auction to run the price sky high.[Speculators, cronies].What is the owners of the item going to say,oh that is too much? They all make money of fthe artificial inflated futures market.Don’t let agood crisis go to waste.Obama has screwed the American people by rejecting the Canadian pipeline deal.He and his brazilian ties would have lost their investment in the whole Gulf Coast oil spill debacle.

      Report Post »  
  • Netsurfer2
    Posted on February 20, 2012 at 2:37am

    When oil goes up in price, you know what follows??? Everything! I take it Iran is also putting the squeeze on us as well. Time to raise our prices of food to them and other countries of the world. Two can play this game!

    I would suggest that Obama opens up our oil fields at maximum to supply our own people with what they need in oil. We can last over 100 years with what we have in the ground and by then we won’t need oil anymore for much else than containers.

    Britain can get their oil from Canada without any problems, France on the other hand may have problems regardless whether it be from the inhabitants and/or what little resources that they don’t have.

    Report Post » Netsurfer2  
    • Thevoice
      Posted on February 20, 2012 at 4:09am

      Obama dealing with the Iranians…It’s like watching the two clowns at the circus. Obama is the one always getting kicked in the ass by the big shoe.

      Report Post » Thevoice  
    • Gonzo
      Posted on February 20, 2012 at 7:34am

      This is a convenient excuse for Obama. If gas prices had doubled and stayed there for a Republican POTUS it would be all his fault no matter what the the Iranians did or didn’t do. The drum beat would be loud and continuous. The MSM will be very happy to lay our current and future gas prices at the feet of Iran.

      Report Post » Gonzo  
    • Baddoggy
      Posted on February 20, 2012 at 7:43am

      @Netsurfer. The problem is that if we open up all domestic drilling wide open, no permits, just drill baby drill, then the price will go down but the drillers will sell the oil anywhere in the world.

      Unless you make domestic oil stay here by regulating the oil copanies..the effect will be temporary at best because the free market will sell oil and gas anywhere it finds a good price.

      So do you want to control companies with regulation (unconstitutionally) by saying domestic oil cannot be sold elsewhere or have higher gas prices from speculators? That is what no one is talking about.

      I do want to ease drilling regulations and open up drilling here and off the coast. I also know that will give us about 10-15 years of stabilized oil prices tops…Maybe a few more.

      Report Post » Baddoggy  
  • carbonyes
    Posted on February 20, 2012 at 2:19am

    And the beat goes on! The dunderhead, and I do mean the Dunderhead-in-Chief that we have as President, Barack Hussein Obama, purposefully sits on his hands, and refuses to tap into some of the largest oil reserves in the world, which either rest inland, off our shores, or in Alaska. His idiocy is further demonstrated by his failure to approve the Canadian to Texas pipeline deal, which as a result Canada has now contracted to deliver the same oil to China. this should be designated as economic treason, and the SOB should be tried for it. The arrogant, ignorant SOB is purposefully bleeding this nation and sucking the air right out of our sails.

    If that no good ba$tard is not defeated in 2012, then we need to open lobotomy clinics throughout this country to open the craniums of the people who voted for that Traitor-in-Chief to see if they have a real brain or they have had brain surgery and had a motorized pre-programmed motor put in their heads, for no sane person could credibly vote for that L!btard.

    Report Post »  
    • chasbronson
      Posted on February 20, 2012 at 7:31am

      One word ,Treason.He,and his ilk are destroying our country.

      Report Post »  
  • AxelPhantom
    Posted on February 20, 2012 at 2:03am

    …and Saudis cut production and exports as well

    “The OPEC heavyweight saw production decline by 237,000 barrels per day (bpd) from three-decade highs of 10.047 million bpd in November, the JODI data showed on Sunday.

    The draw-down was sharper for the actual amount exported, declining by 440,000 bpd, or 5.6 percent, to come in at 7.364 million bpd, the data also showed. The level would still be similar to exports after a steep ramp-up last June”

    Report Post »  
  • LeadNotFollow
    Posted on February 20, 2012 at 2:01am

    …
    As soon as the U.S. voices our opposition to Iran’s nuclear program, they will cut off our oil supply too.

    President Obama, drill here, drill now!!!
    Americans want independence, from the middle eastern Islamic heathens, that you seem to love so much.

    Report Post »  
  • 13th Imam
    Posted on February 20, 2012 at 1:10am

    “Energy Prices Will Necessarily SKYROCKET”
    A Quote by president Barry O BlaBla

    Report Post » 13th Imam  
    • lukerw
      Posted on February 20, 2012 at 1:36am

      Tell your Senator… to Impeach Obama!

      Report Post » lukerw  
    • jb.kibs
      Posted on February 20, 2012 at 1:39am

      no mention that he is not using the USD to trade for oil huh? hmmm… odd.

      Report Post »  
  • mcFirst
    Posted on February 20, 2012 at 12:58am

    barack can use a new crisis to move in some more of his agenda.

    why are we ignoring natural gas as a supply for trucks trains and buses.

    its all judge napolitanos fault. if only he saw how smart barack obama really is.

    Report Post » mcFirst  
  • wordweaver
    Posted on February 20, 2012 at 12:56am

    So how are those sanctions workin’ for you, Mr. President? You have a plan B?

    Report Post » wordweaver  
  • The_Jerk
    Posted on February 20, 2012 at 12:51am

    Proof that the Europeans were correct when their polls showed that Israel and America are the greatest threats to world peace. Political America, fighting wars for Israel by proxy, can only lose for the American people. Israel is way too costly in American money, lives, and reputation/world standing/respect.
    American‘s are being betrayed by citizens with more loyalty to Israeli’s than American’s.
    http://www.iasps.org/strat1.htm

    Report Post »  
    • BOMUSTGO
      Posted on February 20, 2012 at 7:02am

      You should brush up on Israel and bible prophecy.

      Report Post » BOMUSTGO  
  • SPOT_OF_TEA
    Posted on February 20, 2012 at 12:49am

    I thought Obama said he was going to use carrots instead of a stick when dealing with Iran……So we cut off drilling for oil at home and now the price is necessarily skyrocketing as the wealth continues to shift from America as planned.

    Report Post » SPOT_OF_TEA  
  • Captain Crunch
    Posted on February 20, 2012 at 12:49am

    I’d say they have us over a barrel. It’s all Obamas fault.

    Report Post »  
    • USAMEDIC3008
      Posted on February 20, 2012 at 1:01am

      May be fault of every American that said,
      somebody Take care of it ,I dont have time,
      The ballgame is about to start

      Report Post » USAMEDIC3008  
  • TheObamanation
    Posted on February 20, 2012 at 12:45am

    They‘re only doing this to make Bush’s economy look bad.

    Report Post » TheObamanation  
    • CatB
      Posted on February 20, 2012 at 12:51am

      Obama ….”If Iran decided to shut down the petroleum-rich Strait of Hormuz tomorrow, they believe oil would skyrocket to $300-a-barrel in minutes, a price that one speculator predicted would result in $12-a-gallon gas. $12 a gallon.”

      Looks like his dream is coming true.

      Report Post »  
    • CatB
      Posted on February 20, 2012 at 12:52am

      Opps .. here is the link ….

      http://www.youtube.com/watch?v=8D_IL3Vwbqg&feature=related

      Report Post »  
    • carbonyes
      Posted on February 20, 2012 at 2:24am

      CATB, if your figures are accurate, and the same should occur, Barack Hussein Obama should be dragged kicking and screaming out of the White House and literally tarred and feathered.

      Report Post »  
  • seeker9
    Posted on February 20, 2012 at 12:44am

    Drat! It was easy at one time – buy oil stocks in Feb, sell by Labor day. Now oil is already up, UGA (US gasoline) ETF has already had a run. What is one to do? Iran has no respect or fear of the US, BHO wants high energy prices to further his green agenda. Buy USG and oil services. 50-50 chance. Could some semblance of peace or utopia break out? Not likely.

    Report Post » seeker9  
  • Itsjusttim
    Posted on February 20, 2012 at 12:40am

    That’s strange because I thought Iran cut oil to Europe, and Saudi Arabia cut out-put in general but as they said they wouldn’t do.

    Report Post » Itsjusttim  
  • KidCharlemagne
    Posted on February 20, 2012 at 12:38am

    Iran did a bad thing…..not only did they go off of the dollar….they built a competing mercantile exchange to trade crude oil at too:

    —————————————-
    “While the current volume of trades at Iran’s IOB are dwarfed by the daily transactions carried out at NYMEX and ICE, Washington and its allies view establishment of the Kish Oil Bourse as a potential danger to the West’s effective monopoly in energy trading as well as the Western financial establishment, given that transactions are accepted in any currency except Dollars.”
    http://oilprice.com/Latest-Energy-News/World-News/Irans-Kish-International-Oil-Bourse-Completes-First-Oil-Transaction.html

    When demand for dollars goes down, then oil (and gasoline) prices go up (as well as interest rates too).

    Report Post »  
    • CatB
      Posted on February 20, 2012 at 12:46am

      Interest rates here will NOT go up .. they are Federal Reserve controlled and they have already said they will not raise them … bad to worse.

      Report Post »  
    • KidCharlemagne
      Posted on February 20, 2012 at 8:28am

      CatB
      Posted on February 20, 2012 at 12:46am

      Interest rates here will NOT go up .. they are Federal Reserve controlled and they have already said they will not raise them … bad to worse.
      ================================

      You are MISTAKEN!

      Chairman Bernanke only controls short-term interest rates…

      Long-term interest rates on U.S. Treasuries are controlled by the market (supply and demand). When demand for US debt goes up, then interest rates go down and when demand for US debt goes down, then interest rates go up.

      Because crude oil can only be purchased on this planet using US dollars, then that creates an artificial demand for US dollars that wouldn’t otherwise exist (keeping interest rates down). If that demand for US dollars were to begin subsiding, then interest rates would go up anyway (regardless of Chairman Bernanke’s actions).

      Report Post »  
  • SIXFRIGATES
    Posted on February 20, 2012 at 12:21am

    And he said, The $#!T hath hitteth the fan… My favorite scripture.

    Report Post » SIXFRIGATES  
  • inblack
    Posted on February 20, 2012 at 12:18am

    Oh WOW – why did Iran cut supply?

    Because the US has initiated war by blockading them.

    You reap what you sow.

    We’d have been better off ignoring Iran until they actually did something wrong.

    This preemptive war on Iran is immoral.

    Report Post »  
    • samuelwcordrey
      Posted on February 20, 2012 at 1:03am

      Oh it had nothing to do with them blocking the straits did it or threatening to destroy nations. when someone says they’ll shoot you I hope you wait till they do.

      Report Post »  
  • TheObamanation
    Posted on February 20, 2012 at 12:17am

    Whatever we do … let’s not drill for oil here … we can just do without … think of the caribou.

    Report Post » TheObamanation  
    • CatB
      Posted on February 20, 2012 at 12:27am

      All according to plan ….

      http://www.youtube.com/watch?v=HlTxGHn4sH4

      Report Post »  
    • CatB
      Posted on February 20, 2012 at 12:28am

      Barack Obama: “Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.” (January 2008)

      The ends justifying the means …

      Report Post »  
    • KidCharlemagne
      Posted on February 20, 2012 at 12:40am

      What are we gonna’ do with it though?….sell it overseas too?:

      ————
      “In a first, gas and other fuels are top U.S. export
      December 31, 2011

      NEW YORK (AP) – For the first time, the top export of the United States, the world’s biggest gas guzzler, is — wait for it — fuel.

      Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. It will also be the first year in more than 60 that America has been a net exporter of these fuels.”
      http://www.usatoday.com/money/industries/energy/story/2011-12-31/united-states-export/52298812/1

      Report Post »  
    • Exrepublisheep
      Posted on February 20, 2012 at 1:27am

      Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. It will also be the first year in more than 60 that America has been a net exporter of these fuels.” This is only driving up the profits of our domestic oil producers. So if you follow the $$$…

      Report Post » Exrepublisheep  
    • Exrepublisheep
      Posted on February 20, 2012 at 2:18am

      p.s. thanx kidcharlemagne!

      Report Post » Exrepublisheep  
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