Investing.com - Crude futures fell in early Asian trading Thursday, after posting hefty gains in recent sessions in wake of Iran's repeated threats to close the Strait of Hormuz and block the world of a crucial supply conduit.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD103.18 a barrel in early Asian trading, down 0.04%.
The commodity hit a session high of USD103.55 and a low of USD103.09.
For days now, Iran has threatened to block the flow of oil from crude-rich Persian Gulf countries at the narrow Strait of Hormuz in protest of Western sanctions slapped on Tehran for allegedly pursuing a nuclear program.
More than a third of the world's ocean-going crude moves through the Strait of Hormuz.
The U.S. has said it won't allow such a threat to become reality and has moved a carrier around as language to Iran to back off.
Iran, meanwhile, has warned the U.S. and its Navy not to interfere in its affairs.
Such saber rattling has rocketed oil prices, but profit taking kicked in on Thursday and crude oil futures fell.
Furthermore, analysts warn, is that rising oil prices will hurt an already shaky economy in Europe, which won't be able to support any further gains in price.
"Iran is the supporting factor, but these price levels will hurt the economy, Europe oil demand with prices at these levels will be a total disaster," said Olivier Jakob, analyst at Petromatrix in Zug, Switzerland, according to Reuters.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery were down 0.46%, trading at USD113.29 a barrel, up USD10.11 from its U.S. counterpart.
The gap in price between the two contracts hovers roughly midway between a 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 February traded at USD103.18 a barrel in early Asian trading, down 0.04%.
The commodity hit a session high of USD103.55 and a low of USD103.09.
For days now, Iran has threatened to block the flow of oil from crude-rich Persian Gulf countries at the narrow Strait of Hormuz in protest of Western sanctions slapped on Tehran for allegedly pursuing a nuclear program.
More than a third of the world's ocean-going crude moves through the Strait of Hormuz.
The U.S. has said it won't allow such a threat to become reality and has moved a carrier around as language to Iran to back off.
Iran, meanwhile, has warned the U.S. and its Navy not to interfere in its affairs.
Such saber rattling has rocketed oil prices, but profit taking kicked in on Thursday and crude oil futures fell.
Furthermore, analysts warn, is that rising oil prices will hurt an already shaky economy in Europe, which won't be able to support any further gains in price.
"Iran is the supporting factor, but these price levels will hurt the economy, Europe oil demand with prices at these levels will be a total disaster," said Olivier Jakob, analyst at Petromatrix in Zug, Switzerland, according to Reuters.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery were down 0.46%, trading at USD113.29 a barrel, up USD10.11 from its U.S. counterpart.
The gap in price between the two contracts hovers roughly midway between a USD20.00 all-time high and a historical spread of USD1.00.