Oil traded near its highest price in nine months on Monday, fueled by speculation that demand will recover on the combined news of a euro-zone agreement on Greece’s second bailout, and Iran’s announcement it will refuse crude oil sales to the UK and France.
WTI oil for March delivery climbed over 2% from pre-weekend prices. Brent crude climbed to $121.60 in Monday trading. WTI stablised around the $105 mark.
Iran’s oil-ministry news website Shana reported Feb. 19 that the nation will cut crude supplies to the U.K. and France.
Earlier Iranian minister of petroleum Rostam Qasemi had hinted in a press conference to the possibility of cutting oil export to some European countries.
Shana quotes Petroleum ministry’s spokesman Alireza Nikzad Rahbar saying: “Following an official announcement by the foreign ministry, petroleum ministry decided to halt oil delivery to England and French companies.”
“Islamic Republic of Iran has no problem to sell its crude oil to other customers,” the official said.
“We have our own customers and have no problem to sell our crude oil to new customers’, Nikzad concluded.
Bloomberg reports prices traded yesterday are 22 percent higher the past year.
