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Crude oil climbs as EU bans Iran imports

Published 01/23/2012, 08:19 PM
Updated 01/23/2012, 08:26 PM
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Investing.com - Crude futures rose Tuesday after the European Union made good on plans to ban imported oil from Iran to punish the Middle East country for allegedly developing a nuclear program.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD99.70 a barrel in Asian trading, up 0.13%.

The commodity hit an earlier session high of USD100.00 and a low of USD99.59.

A weaker dollar fueled demand for oil as well, as a softening greenback makes commodities that trade in the U.S. currency more attractive.

On top of the embargo, which takes effect July 1, European nations also agreed to freeze Iranian central bank assets.

Iran, in turn, reiterated threats to close the Strait of Hormuz, a narrow water connecting oil-rich Persian Gulf nations with the rest of the world.

Experts said prices could have soared by even more on Tuesday.

"Because of the delay in full implementation, it hasn't pushed the price up as much as it might have done," said Christopher Bellew, a trader at Jefferies Bache, according to Reuters.

"It may never be fully implemented. Heaven knows what will happen between now and the first of July."

Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery were down 0.12% and trading at USD110.75 a barrel, up USD11.05 from its U.S. counterpart.

The gap in price between the two contracts hovers on the higher end between a nearly USD20.00 all-time high and a historical spread of USD1.00.





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