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Crude Oil Prices Rise on Iranian Threats, No impact seen from Nigeria strike

By on January 10, 2012

Crude Oil prices have risen for the first time in four days on speculation that the planned embargo on Iranian cargoes may disrupt supply.

The quote price of West Texas Intermediate was 102.71, up 1.38% as at press time, reflecting the risk premium market speculators attribute to supply disruptions that may arise as a result of the conflict.

Brent Oil climbed by as much as 50 cents per barrel, a change of +0.45% by 7:11 hrs this morning.

According to Bloomberg, Crude Oil has climbed as much as 3.9% due to threats by Iran to block the Strait of Hormuz should US and Europeans increase economic sanctions over its nuclear program.

Dennis Ross, a former Obama adviser on Iran, believes that Iran is bluffing and will not close the Strait as the country has a lot to lose in doing so.

The national strike in Nigeria is yet to affect oil exports according to Royal Dutch Shell. It is unexpected that the strike will affect oil exports, although labour leaders promised to shut down oil installations.