Brent crude oil prices open today’s trading session firm over $115 a barrel as the European oil contract registers it’s fifth straight day of trading gains off the back of oil supply and demand data and growing tensions that surround Iran’s nuclear program.
Latest Brent Oil Price
In London, Brent crude oil futures for December 2011 delivery was trading at $115.51 a barrel, 07.40 GMT this morning on the ICE Futures Exchange.
Oil Supply & Demand
Oil traders are closely watching the latest US crude inventory figures out of America with the US API (American Petroleum Institute) reporting late on Tuesday that US crude oil inventories rose just 148,000 barrels last week while analysts had predicted an increase of 1 million barrels.
Tensions Over Iran Resurface
The United States and Israel have once again voiced grave concerns on Iran’s nuclear program and suggested more sanctions, or even military action, against Tehran following a report released yesterday accusing Iran of conducting activities aimed at developing nuclear weapons.
The report says Iran has obtained enough sensitive material and expertise that it could build a nuclear weapon relatively quickly if it wanted to. The new evidence reinforces Western suspicions that Tehran’s nuclear ambitions are not peaceful as it has long claimed.
A 13 page attachment to the IAEA’s report details intelligence and IAEA research that shows Tehran working on all aspects of research toward making a nuclear weapon, including fitting a warhead onto a missile.
Iran’s nuclear plans may threaten Middle East stability and could potentially disrupt the flow of oil out of the region.
“This current supply shock potential that the markets are looking at with Iran has pushed the price well above our outlook.” said David Lennox, a resource analyst at Fat Prophets, Sydney.
“Disruptions to Iranian supply would drive oil prices significantly higher.” Morgan Stanley said in a report.
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Brent oil price holding firm over $115, fifth straight day of trading gains
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