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Crude rises on Obama Iran words, pipeline fire

Published 03/04/2012, 09:04 PM
Updated 03/04/2012, 09:07 PM
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Investing.com - Crude oil futures rose in Asian trading Monday after U.S. President Barack Obama said military force was an option for dealing with Iran, while Canadian energy company Enbridge reported a fire along a pipeline it operates in the U.S. state of Illinois.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD107.17 a barrel, up 0.44%.

The commodity hit an earlier session high of USD107.28 and a low of USD106.54.

Tensions between the West and Iran have sent oil prices rising, as Tehran continues with its nuclear ambitions despite sanctions from the U.S. and Western Europe.

The chilly standoff etched up a notch when President Obama said the U.S. would defend Israel should the situation deteriorate into armed conflict.

"I will not hesitate to use force when it is necessary to defend the United States and its interests," Obama said, according to the Associated Press.

Meanwhile, Enbridge closed down part of a pipeline after a fire broke out in part of the system's infrastructure in Illinois as a result of a vehicle accident.

The closure sent prices rising on concerns that supply will suffer as a result.

On the ICE Futures Exchange, Brent oil futures for April delivery were up 0.27% and trading at USD123.97 a barrel, up USD16.80 from its U.S. counterpart.

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







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