Crude oil futures gains on Iran sanctions

19 December 2012 15:16  [Source: ICIS news]

LONDON (ICIS)--ICE Brent crude oil futures gained more than $1.00/bbl on Wednesday supported by sanctions against Iran, firmer stock markets and hopes the US will avoid the fiscal cliff.

By 14:30 GMT, the front-month February ICE Brent contract had touched an intra-day high at $110.00/bbl, a gain of $1.16/bbl compared with Tuesday's close. The contract then edged lower to trade around $109.60/bbl.

At the same time, the front-month January NYMEX WTI contract was trading around $88.15/bbl, having touched an intra-day high at $88.60/bbl, a gain of 67 cents/bbl compared with the previous close.

The crude oil markets found support on Wednesday as details of previously signed sanctions against Iran hit the spotlight. From February next year, funds to pay for oil will remain within the buyer’s country hence preventing oil payments to Iran.

Crude oil prices were also supported by firmer stock markets as investors remain hopeful that US lawmakers will come to a consensus regarding next year’s budget and avoid the fiscal cliff.

By: Kawai Wong
+44 20 8652 3214

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