Brent oil price jumps to $117 a barrel as Iran again threatens Europe supply cut off

The price of Brent oil opened Thursday’s trading session at $117 a barrel as Iran once again threatened to cut off oil supplies to Europe, pushing a plan to halt crude oil exports to European countries before the EU begins an oil embargo this summer.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2012 delivery was trading at $117.45 a barrel, 07.37 GMT today on the ICE Futures Exchange.

The European contract closed off Wednesday’s session at $117.50, or 1.1 percent higher.

Iran is trying to speed up the process and force the EU to replace its oil sooner than expected. “Iran will make the sanctions ineffective as it did in the past, and it will continue selling oil.” Iranian Vice President, Mohammad Reza Rahimi, said in a statement reported Tuesday by the official IRNA news agency.

European Cold Snap

Brent crude oil prices consolidated recent gains to six month highs this week amid continued freezing weather in Europe, whilst traders are concerned about oil supplies from Iran.

The prolonged cold snap in Europe has increased demand for heating oil, leading to widening refining margins. Renewed buying of oil of similar grades to Iranian crude ahead of EU sanctions against Iran, the world’s third largest oil exporter has also supported demand.

“There’s some panic buying going on today because there’s concerns that Iran really is going to cut off the oil.” PFGBest analyst Phil Flynn said.

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Brent oil price jumps to $117 a barrel as Iran again threatens Europe supply cut off