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Crude 0il soars on Iran, China, Greece

Published 02/20/2012, 01:35 PM
Updated 02/20/2012, 01:37 PM
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Investing.com - Crude oil futures rocketed higher Monday, after Iran said it halted crude exports, while optimism that Greece will obtain the needed bailout package and China`s policy easing added to the bullish oil sentiment.  

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD105.28 a barrel during mid U.S. trade, soaring 1.62%.

It earlier hit a high of USD105.80 a barrel and a low of USD104.76 a barrel during the session.

Trading volumes are thin due to NYMEX floor trading being closed for the U.S. Presidents Day holiday. 

Crude prices climbed for the fourth day in a row after Iran stated the country has halted crude oil sales to British and French companies.

This pre-emptive action comes in response to European nation`s threats to start an Iranian oil embargo on July 1.

Meanwhile, optimism over Greece obtaining its second bailout package lifted euro zone economic sentiment.

If Greece fails to qualify for the bail out, it faces the threat of a default when a EUR14.5 billion bond redemption comes due March 20.
 
In addition, China`s decision to spur growth by reducing its banks’ reserve requirements by 50 basis points increased the worldwide economic optimism.

The news helped push the euro higher against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was lower by 0.52% to trade at 79.10.  

Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery added 0.43% to trade at USD120.11 a barrel, with the spread between the Brent and crude contracts standing at USD14.83 a barrel.

Brent prices have outperformed crude in recent sessions amid concerns over a disruption to supplies from African producers, Nigeria and South Sudan, as well as a spell of freezing weather in Europe.




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