Investing.com - Crude oil futures surged Monday after Iran said it cut off supply to the U.K. and France, while news that China trimmed reserve requirements on its banks sparked heavy demand for the commodity as well.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD105.31 a barrel, up 1.65%.
The commodity hit an earlier session high of USD105.56 and a low of USD104.76.
Iran over the weekend said it had cut off supply to France and the U.K. to protest the sanctions the West has slapped on the country for its nuclear ambitions.
The move came as a surprise to many as at the same time, Tehran said it was willing to come back to the negotiating table and allow U.N. inspectors in the country.
Iran insists its nuclear program is peaceful, although the West remains skeptical.
The European Union voted to ban Iranian imports effective July 1, although the oil-rich Middle Eastern country has said it would cut off supply ahead of that date to act in a proactive manner.
China, meanwhile, voted to ease reserve requirement on its banks in an effort to fuel more robust economic expansion, which pushed up oil prices on sentiment that a growing China will need more oil.
Elsewhere, hopes were building in Europe that the continent's finance ministers were set to approve granting Greece EUR130 billion in bailout money.
Such rescue funding would steer the country away from a messy default that would exacerbate an already cooling European economy, which would need less oil and derivatives.
The good news also sparked a risk-on trading session across the world, which prompted investors to come of their shells and ditch safe-haven assets like the dollar or the yen and take on some risk, which would include commodities like oil.
On the ICE Futures Exchange, Brent oil futures for April delivery were up 1.09% and trading at USD121.06 a barrel, up USD15.75 from its U.S. counterpart.
The gap in price between the two contracts is pushing very close toward the higher end of a range between a nearly USD20.00 all-time high and a historical spread of USD1.00.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD105.31 a barrel, up 1.65%.
The commodity hit an earlier session high of USD105.56 and a low of USD104.76.
Iran over the weekend said it had cut off supply to France and the U.K. to protest the sanctions the West has slapped on the country for its nuclear ambitions.
The move came as a surprise to many as at the same time, Tehran said it was willing to come back to the negotiating table and allow U.N. inspectors in the country.
Iran insists its nuclear program is peaceful, although the West remains skeptical.
The European Union voted to ban Iranian imports effective July 1, although the oil-rich Middle Eastern country has said it would cut off supply ahead of that date to act in a proactive manner.
China, meanwhile, voted to ease reserve requirement on its banks in an effort to fuel more robust economic expansion, which pushed up oil prices on sentiment that a growing China will need more oil.
Elsewhere, hopes were building in Europe that the continent's finance ministers were set to approve granting Greece EUR130 billion in bailout money.
Such rescue funding would steer the country away from a messy default that would exacerbate an already cooling European economy, which would need less oil and derivatives.
The good news also sparked a risk-on trading session across the world, which prompted investors to come of their shells and ditch safe-haven assets like the dollar or the yen and take on some risk, which would include commodities like oil.
On the ICE Futures Exchange, Brent oil futures for April delivery were up 1.09% and trading at USD121.06 a barrel, up USD15.75 from its U.S. counterpart.
The gap in price between the two contracts is pushing very close toward the higher end of a range between a nearly USD20.00 all-time high and a historical spread of USD1.00.