Crude gains on EU plan to ban Iranian oil

04 January 2012 15:43  [Source: ICIS news]

LONDON (ICIS)--The front-month February ICE Brent crude oil contract gained almost $2/bbl on Wednesday, after EU governments agreed in principle to ban Iranian crude oil imports.

An effective date has yet to be decided.

By 15:00 GMT, February Brent crude had hit a high of $113.97/bbl, a gain of $1.84/bbl from Tuesday’s close of $112.13/bbl, before easing back to around $113.29/bbl.

At the same time, February NYMEX light sweet crude futures were trading around $103.27/bbl, having hit a high of $103.74/bbl, a gain of 78 cents/bbl from the previous close of $102.96/bbl.

The planned embargo came as Iran itself threatened to block crude shipments through the Strait of Hormuz as it faced sanctions over its nuclear programme.

President Barack Obama signed sanctions into law on New Year’s Eve that would block any financial institution dealing with Iran’s central bank from access to the US financial system.

Effectively this would block refineries worldwide from paying for Iranian crude.

On Wednesday French foreign minister Alain Juppe said his country had made a unilateral decision not to buy Iranian oil and urged other EU members to make similar moves by January 30.

($1 = €0.77)

 

 


By: Kawai Wong
+44 20 8652 3214



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