Investing.com – Crude oil futures rose on Monday, rebounding from the previous session’s three-week low as concerns over a disruption to oil supplies from key producers Iran and Nigeria escalated over the weekend.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD99.53 a barrel during European morning trade, climbing 0.65%.
It earlier rose by as much as 0.77% to trade at a daily high of USD99.64 a barrel.
Crude prices dropped to the lowest level since mid-December on Friday after ratings agency Standard & Poor’s stripped France and Austria of their coveted triple-A ratings and slashed Italy, Spain, Portugal and Cyprus by two notches.
However, prices regained strength as oil traders continued to monitor tensions between Iran and the West after the Islamic Republic warned over the weekend that a disruption to crude supplies through the Strait of Hormuz would cause a shock to markets that “no country” could manage.
Meanwhile, Britain's foreign secretary William Hague said Sunday that he believed the European Union would agree tough new sanctions against Tehran's oil sector later this month.
Oil prices came under pressure late last week after reports surfaced that a pending European Union embargo on Iranian oil imports could be delayed by six months to allow some countries to find alternative supply.
Foreign ministers from the 27 European Union member states are scheduled to decide on sanctions on January 23 in Brussels.
Iran is the world's fourth largest oil producer, pumping nearly 5% of the world's oil in 2010. The threat of a major supply disruption from the country has helped support oil prices in recent sessions.
Further supporting prices, Nigerian President Goodluck Jonathan and labor unions had reportedly failed to reach a compromise over the removal of fuel subsidies over the weekend, raising fears of a shutdown of the African nation’s oil industry.
Nigeria is Africa’s largest oil producer, priding nearly 2.0 million barrels per day, with exports going largely to the U.S. and Europe.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery rose 0.84% to trade at USD111.28 a barrel, with the spread between the Brent and crude contracts standing at USD11.75 a barrel.
NYMEX floor trading will be closed on Monday for the Martin Luther King Jr. holiday.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD99.53 a barrel during European morning trade, climbing 0.65%.
It earlier rose by as much as 0.77% to trade at a daily high of USD99.64 a barrel.
Crude prices dropped to the lowest level since mid-December on Friday after ratings agency Standard & Poor’s stripped France and Austria of their coveted triple-A ratings and slashed Italy, Spain, Portugal and Cyprus by two notches.
However, prices regained strength as oil traders continued to monitor tensions between Iran and the West after the Islamic Republic warned over the weekend that a disruption to crude supplies through the Strait of Hormuz would cause a shock to markets that “no country” could manage.
Meanwhile, Britain's foreign secretary William Hague said Sunday that he believed the European Union would agree tough new sanctions against Tehran's oil sector later this month.
Oil prices came under pressure late last week after reports surfaced that a pending European Union embargo on Iranian oil imports could be delayed by six months to allow some countries to find alternative supply.
Foreign ministers from the 27 European Union member states are scheduled to decide on sanctions on January 23 in Brussels.
Iran is the world's fourth largest oil producer, pumping nearly 5% of the world's oil in 2010. The threat of a major supply disruption from the country has helped support oil prices in recent sessions.
Further supporting prices, Nigerian President Goodluck Jonathan and labor unions had reportedly failed to reach a compromise over the removal of fuel subsidies over the weekend, raising fears of a shutdown of the African nation’s oil industry.
Nigeria is Africa’s largest oil producer, priding nearly 2.0 million barrels per day, with exports going largely to the U.S. and Europe.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery rose 0.84% to trade at USD111.28 a barrel, with the spread between the Brent and crude contracts standing at USD11.75 a barrel.
NYMEX floor trading will be closed on Monday for the Martin Luther King Jr. holiday.