NYMEX crude regains over $2/bbl on Iran concerns

21 July 2008 09:52  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures gained more than $2/bbl on Monday, after a huge decline last week, as talks between Iran and the west ended in deadlock and concerns built over a tropical storm entering the Gulf of Mexico.

At 08:02 GMT on Monday, August NYMEX light sweet crude futures traded at $130.90/bbl, up $2.02/bbl on last Friday’s settlement level. Earlier it hit a high of $130.96/bbl, up $2.08/bbl.

At the same time, September ICE Brent futures were trading at $132.39/bbl, up $2.20/bbl on last Friday’s settlement price, having earlier hit a high of $132.46/bbl, up $2.27/bbl

Supply worries rose after weekend talks between Iran and the west over Tehran’s nuclear programme failed to deliver any concrete results and raised the possibility of further sanctions.

Iran has refused repeated demands to stop uranium enrichment despite three waves of UN sanctions.

Traders were also concerned about tropical storm Dolly and its potential threat to oil and gas facilities in the Gulf of Mexico.

Crude prices had slumped by a massive $15-16/bbl last week amid concerns over the economic health of both the US and other leading economies.

Worries over a further decline in demand in the developed nations were heightened by unexpected large builds in weekly US crude and product inventories.

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By: James Dennis
+65 6780 4359

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