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Crude rises on U.S. comments on Iran

Published 03/05/2012, 09:21 PM
Updated 03/05/2012, 09:24 PM
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Investing.com - Crude oil futures rose in Asian trading Tuesday after U.S. President Barack Obama met with his Israeli counterpart, Benjamin Netanyahu, and later stated all options were on the table when dealing with Iran, including military strikes

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD106.89 a barrel, up 0.16%.

The commodity hit an earlier session high of USD107.33 and a low of USD106.81.

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

In the U.S. on Monday, Obama reiterated U.S. willingness to see if sanctions would force Iran to halt its nuclear program, although Netanyahu remained firm, saying Israel has the right to defend itself and adds his country was the master of its fate.

The European Union has voted to halt Iranian oil imports beginning July 1, although Iran has said it has ceased shipments to France and the U.K. as a preemptive move.

Worries that other countries may see supply cut off due to geopolitical tensions pushed oil up Tuesday as well.

China offset crude's gains with tempered economic forecasts.

Beijing announced recently its has set a 2012 gross domestic product growth target at 7.5%, a little lower than hoped, which dampened the asset's gain.

The government had set an 8% goal from 2005 to 2011.

On the ICE Futures Exchange, Brent oil futures for April delivery were down 0.01% and trading at USD124.08 a barrel, up USD17.19 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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