Brent oil price remains near $103 a barrel boosted by tensions over Iran
BonTradeBrent oil futures open today’s session near $103 a barrel as crude oil prices edged higher, boosted by ongoing tensions over Iran and a modestly weaker US dollar, as shown by a dip in the US Dollar Index however the short term outlook for oil remains mixed.
Latest Brent Oil Price
In London, Brent crude oil futures for September 2012 Delivery was trading at $103.28 a barrel, 04.25 GMT today on the ICE Futures Exchange. The August Brent futures contract expired on Monday.
Iran Tensions
Iran has once again warned against the US military deployment in the Gulf after the fatal shooting of an Indian fisherman by a US Navy ship in waters off Dubai earlier this week.
“When the Islamic republic says that the presence of foreign forces is a source of insecurity, this is a perfect example” of what Iran means, foreign ministry spokesman Ramin Mehmanparast said.
US defence officials said the fishing boat had ignored warnings not to approach the refuelling ship USNS Rappahannock and that sailors on board the American vessel feared it could pose a threat.
The US navy has been building up its forces in the oil-rich Gulf region amid mounting tensions with Iran over its controversial nuclear program. The Pentagon is building a missile-defense radar station at a secret site in Qatar and is also organising its biggest-ever minesweeping exercises in the Persian Gulf.
The radar will complete the backbone of a US defense system meant to safeguard US interests in the region, as well as protect European nations and Israel from long-range Iranian rockets.
The UN Navy’s minesweeping exercises will be the first of its kind in the region.
The market “is nervous with all the tensions in the Gulf,” said Andy Lipow at Lipow Oil Associates.
The Chief of Staff of Iran’s Armed Forces Major General Hassan Firouzabadi announced on Sunday that the country has drawn a plan for closing the world oil lifeline, the Strait of Hormuz, in the Persian Gulf, but meantime stressed that Iranian forces will not shut the waterway before they receive the needed permission from the Supreme Leader.
“We have a plan for closing the Strait of Hormuz, but executing the plan needs the permission of the Supreme Leader,” Firouzabadi told reporters on the sidelines of an annual gathering of the Islamic Revolution Guards Corps (IRGC) commanders in Tehran on Sunday.
US Dollar Index
The US Dollar Index fell on Tuesday and is currently near 83.215 in trading on currency markets. However the dollar may see more strength off the back of a weak euro currency and also after comments from the US Fed chairman Bernanke indicated no more stimulus or money printing of US dollars (QE3) anytime soon.
Original post:
Brent oil price remains near $103 a barrel boosted by tensions over Iran
